Loewen's bonds. As of today (the day after the bankruptcy filing announcement), Loewen's 6.10% 2002 bonds (a Canadian Dollar issue) are quoted to me as 55 bid 60 offer. Also, no unusual activity (panic, unusual volume, etc) reported.
Going by the (lack of) action in common stock, preferred stock, and bond pricing, it seems that the market had already more or less incorporated the scenario of Loewen filing for bankruptcy protection into the various prices.
When I first became interested in Loewen's bonds they were 58-60. By the time I finally got around to buying them, I was able to buy them for 50. Now they're somewhere in between. So the prices are bouncing around a bit, but it's not the sort of thing that could be traded (at least by me), since it seems to be a pretty illiquid market with pretty wide spreads.
At this point, my prediction still remains that today's common shareholders will realize zero value, and the bond holders will likely realize at least 60-80 cents on the dollar.
- Daniel |
