Genco’s convertible notes traded at 100.5 cents on the dollar on Tuesday, before settling back to around 96 cents at TradeWinds’s deadline. The bonds had been trading at only 85 cents before Genco disclosed plans for a pre-packaged Chapter 11 filing on 3 April that sees holders of bank debt converted to 81% owners of the revamped company.
Bondholders are likely reacting to prospects of an upside to their holdings from equity in the reorganised company, one bond trader tells TradeWinds.
They
