Arch Wireless' bank debt continues to fall on sector problems, last week sliding to 23 from 26. Dealers reported a series of small trades last week. No buyers and sellers could be determined, but one trader said "a lot of desks have an axe in it." The paper plummeted 20 points in late July after the company announced it may default on its credit facility (LMW, 7/29). Dealers continue to note a sagging paging industry. "The pager is an item people can do without. With cell phones it's not really necessary," said a dealer.
A company spokesman said that the industry is in transition from its original paging business to instant messaging. He noted that the wireless business is still in its infancy. "To suggest there's no demand for paging isn't true," he said. The company had proposed a recapitalization plan on May 23, but withdrew it when second quarter operating performance was weaker than expected. "We will proceed with some form of restructuring, but we are evaluating what options we have at this point," he said.