Roughly $80 million of Comdisco bank debt was believed to have traded out of Morgan Stanley at the 82 3/8 - 83 level this week. Traders said the firm won an auction that occurred on June 14 and promptly placed the paper with an undisclosed buyer or buyers last week. Calls to Morgan Stanley were not returned by press time.
The name was moving after the company released its second reorganization plan, which stated that unsecured debt holders were to be paid back at 90 cents on the dollar after the company works through Chapter 11. One trader said the new plan was an improvement from the company's first plan, which only offered creditors a return in the low 80s.
A Comdisco spokeswoman noted that both the unsecured creditors and equity statutory committees have supported confirmation of the plan. The Rosemont, Ill., technology services company currently is soliciting votes to approve the plan, with a voting deadline of July 19. The confirmation hearing is set for July 30-31, and there would be a short waiting period before the effective date of emergence, she said.