The dust appears to have settled on Washington Group's debt, as the recent plummet of levels has reversed to a positive trend. Meanwhile, dealers note increasing comfort surrounding the company's financial issues and confidence that its core business--construction--is in demand and profitable. Dealers reported a series of small trades in the 82-83 context early last week. The Boise, Id.-based company is one of the country's largest construction and engineering firms. Calls to Washington Group were referred to a spokeswoman, who said the company plans to pull out of Chapter 11 in the fall.
Washington Group is suing Raytheon, whose construction and engineering arm it acquired last year, for allegedly not fully disclosing the extent of its liquidity problems. Yet the debt has made a sizeable jump from its low of 55 in March, when Washington Group made an announcement that it would file for bankruptcy protection. Levels traded up to 65-67 in late June (LMW, 6/17).