Levels for Microcell Telecommunications' bank debt ticked up from the 20s to the 35-40 range last week as investors consider a restructuring for the Canadian wireless company. No trades could be confirmed, but one trader said, "Everyone is trying to sell it."
Microcell has a bond payment due in December that many believe it will miss. The trader said that, as a result, market players think the company will pursue a pre-emptive restructuring, which would be good for the banks. He added that some speculated the company would disclose its restructuring plans during its earnings conference call, which was scheduled to occur last Friday after LMW went to press.
Microcell's bank debt has been fluctuating in the secondary market for the last couple of months, dipping into the teens in late September before bouncing back. Jacques Leduc, Microcell cfo, could not be reached by press time.