Charter Communications' bank debt took a five- to seven-point hit after the company revealed that it has received a grand jury subpoena from the U.S. district attorney's offices for the Eastern District of Missouri. The investigation is focused on Charter's current and disconnected customers and its policies and procedures relating to the capitalization or expense of various costs and related matters, according to a company statement. By midweek, the market for the name had sunk to the 80 1/2 - 82 3/4 range, with a couple of small trades occurring in that context. Callsto Kent Kalkwarf, cfo, were referred to a spokesman, who did not return calls by press time.
Meanwhile, Qwest Communications International rallied from the 58-62 level after the company announced that it had completed the sale of its directories business. No trades could be confirmed, but traders quoted the company's bank debt anywhere from the mid-70s to the mid-80s. "There is an awful lot of talk about where the bank debt is, but no one knows because there haven't been any trades," one dealer said. Calls to Oren Shaffer, cfo, were referred to a spokesman, who did not return calls by press time.
Kmart's bank debt also regained some ground this week, with a trade occurring at about the 40 level. The paper had sunk into the mid-30s last week after the company requested a few tweaks to its debtor-in-possession facility. But the embattled retailer announced a list of cost-cutting initiatives this week, including plans to save the company $66 million for its current fiscal year and $130 million annually. Calls to Albert Koch, cfo, were not returned by press time.