Winstar notes price at record low

NEW YORK-Winstar Communications Inc. traded its 12.5 percent senior notes due 2008 at a record low price of $400 per $1,000 bond. According to Arsenio & Company, an investment bank specializing in corporate evaluations and equity research, Winstar senior notes face this 60 percent discount despite being subordinate to only approximately $2.4 billion of its $6.5 billion in debt and liabilities. Arsenio & Company also notes that the price indicates the bonds have begun to discount Winstar’s questionable accounting practices and its actual inability to service its debts.