Xerox's bank debt traded in the 94-95 range this week with more than $15 million changing hands amid buzz surrounding the company's attempt to extend part of its bank line maturing in October. Market players hold conflicting opinions on whether or not the company will be able to extend the line. "At the end of the day it's a low 90s name," said one trader.
Investors are disheartened by the preliminary fourth quarter loss reports, the $10 million civil penalty from the Securities and Exchange Commission for accounting fraud charges, and the 22% decline in high-end color printer sales. There has been some speculation on whether or not the company will have to file for bankruptcy because of liquidity issues.Christa Carone, company spokeswoman, said the bank line extension negotiations are absolutely on track and the company expects resolution no later than the end of June.