A Japanese bank is believed to have auctioned a $50 million piece of Warnaco Group at 30 today as the company continues to work through its Chapter 11 reorganization plan. The name had been moving at 30 earlier in the week and had been quoted in the 24-26 range last week. The company is expected to file its reorganization plan soon. Reports indicated that Bear Stearns is helping Warnaco explore the sale of some of its core businesses, which include Calvin Klein Jeans. Warnaco licenses the right to make clothing under brands such as Calvin Klein, Warners, Speedo and Oscar de la Renta.
Around this time last year Warnaco's levels dropped more than a dozen points after the company announced it was under investigation by the Securities and Exchange Commission, and there was expected to be a rush to unload the paper. Bids on the company's bank debt fell from 40 to the high 20s as dealers holding the paper started looking for a way out. (LMW, 4/02). Calls to company officials were not returned.