NEW YORK-Moody’s Bankrupt Bond Index posted its third consecutive monthly increase in
January, “attributable to large gains in a handful of issues,” including one sold by Geotek Communications
Inc., the debt rating agency said Feb. 9.
Geotek’s Series B senior secured discount notes “rebounded strongly
with a 32.5-percent increase” in their secondary market trading value, said Moody’s Investors Service Inc. risk
management analysts David T. Hamilton and Lea V. Carty.
The company’s outstanding debt got a boost of
confidence after a group of investors led by billionaire George Soros “reported to the Securities and Exchange
Commission an 18.1- percent investment stake in Geotek,” they said.
While Geotek was one of four bankrupt
companies whose outstanding debt increased in aftermarket trading value last month, MobileMedia Corp. was one of
five companies the Moody’s analysts cited as “notable decliners.”
MobileMedia’s senior subordinated
notes due 2007 fell in aftermarket trading value by 33.3 percent in January as creditors were considering a third
amended plan of bankruptcy reorganization, which they approved.
At the end of January, the Moody’s Bankrupt
Bond Index comprised a total of 43 issuers and 69 debt issues totaling $8 billion.
