Real estate pain is expected to spread as landlord concessions like rent abatements run out, according to Cynthia Romano, global director of CohnReznick’s restructuring and dispute resolution practice.
Trouble Eases
The total amount of traded distressed bonds and loans shrank to about $149 billion as of Dec. 31, down 8.3% week-on-week and a fraction of the $935 billion peak in March.
Troubled bonds and loans declined 7.7% and 10%, respectively, in the last week of the year.
There were 290 distressed bonds from 154 issuers trading as of Monday, down from 377 and 199, respectively, two weeks ago. That’s significantly less than the 1,896 credits from 892 companies at the March 23 high.
AMC Entertainment Holdings Inc. had the most distressed debt of issuers that hadn’t filed for bankruptcy as of Dec. 31, Bloomberg data show.
Several distressed companies have potentially significant dates approaching. Peabody Energy Corp. has an early tender deadline on Jan. 8, Community Health Systems Inc. wraps up a tender offer Jan. 11, while Party City Holdco Inc. has a bond payment due Jan. 15.
--With assistance from Anik Chattopadhyay and Jenny Sanchez.
This article was provided by Bloomberg News.