Quotes on Covanta Energy's bank debt ranged as much as 15-18 points last week after the company filed for bankruptcy on Monday and word of a debtor-in-possession deal circulated. Dealers had quoted the name as high as the low 70s and as low as the mid-50s over the week with one trade reported at 60. Market players suggest that there is a DIP on the table that will offer participants extra security. "Some of the unfunded commitments like the letters of credit will get rolled into the DIP," explained one trader of the rumored deal. More information could not be obtained by press time. Calls to Lou Walters, company treasurer, were referred to a spokesman who did not return calls.
Rumored Covanta Deal Sparks Market Buzz