Casinos, media join autos on way to bankruptcy( and amusement park)

Market Watch ^ | 03/02/09 | Deborah Levine

[TigerLikesRooster]

Casinos, media join autos on way to bankruptcy

Bonds selling for dimes on the dollar show investors are expecting the worst

By Deborah Levine, MarketWatch

Last update: 5:43 p.m. EST March 2, 2009

NEW YORK (MarketWatch) -- The bond market is doing the equivalent of a death watch on several well-known companies, signaling the U.S. economy could be in for more pain as struggling firms renege on loan payments and possibly file for bankruptcy.

Bonds of General Motors Corp. (GM) and auto supplier Visteon Corp. (VC) ; retailer Michaels Stores and theme-park operator Six Flags Inc. (SIX) ; media firm Univision; and leveraged buyouts Rite Aid Corp. (RAD) and Station Casinos all are trading for under 25 cents on the dollar. Death watch Bond prices for these companies indicate investors anticipate they may default

That means bond holders anticipate these companies may not be able to keep up payments on their debt. Investors are only willing to hold the bonds at a deep discount to face value of 100 cents of the dollar.

"A lot of companies trading below a certain level are the walking wounded," said Kingman Penniman, president of junk bond specialist KDP Investment Advisors. "We're really concerned about defaults."

[TigerLikesRooster]

Company               Industry	        Bond prices on $1 (Maturity/coupon)
General Motors      Auto	                $0.14 (2033/8.375%)
Ford	                      Auto	                $0.19 (2031/7.45%)
Visteon	              Auto	                $0.05 (2014/7%) 
American Axle	      Auto	                $0.16 (2017/7.875%)
ArvinMeritor	      Auto	                $0.23 (2015/8.125%)
Six Flags	             Entertainment     $0.18 (2014/9.625%)
Station Casinos     Entertainment	$0.05 (2014/6.5%)
Univision	             Media	                $0.09 (2015/9.97%)
Dex Media	     Media	                $0.07 (2013/9%)
Michaels	             Retail	                $0.24 (2016/11.37%)
Rite Aid	             Retail	                $0.24 (2015/8.625%)
Data: KDP Investment Advisors

[TigerLikesRooster]

Ping!

[Regulator]

Feel real bad about the seditionist Univision going under

Not

[hiho hiho]

Remember when the news media was constantly heckling Bush to ask the American people to sacrifice. They made snide comments about Bush telling the people to go out and shop. Well the people are now following their advice.

[edcoil]

When do they start asking “O” at every interview to apologize or discuss his regrets?

[Titus Quinctius Cincinnatus]

Well that's a shame. NOT. All those newspapers and whatnot going under, maybe there's hope yet. Conservative media. Conservative newspapers and magazines. Here's one, stocked with a lot of your fellow FReepers. It's even free. Get it, read it, pass it on, let it inform you!

[max americana]

I feel the same way about Univision. Too bad about Michael’s though. It has been a fave of the women in my life. Rite Aid, I buy my beer from and 6 flags..sheesh, its like a zombie. Ever since 2006, I’ve heard rumblings about it closing down in Socal but it’s still there and they’re hiring for the summer.

[Shyla]

Six Flags has been a house of cards for years.

[bruinbirdman]

"Station Casinos all are trading for under 25 cents on the dollar. "

Station Casinos is being bought out by Boyd Gaming.

yitbos

[Don Corleone]

Dow 3000 anybody??

[1010RD]

For your listening enjoyment:

Going Down - Freddie King

[GeronL]

who would buy GM bonds?? You have to stand in line behind the feds if they failed and you ain’t getting squat. Nobody but govt will lend them a dime now.

[1010RD]

Let me try that again.

For your listening enjoyment:

Going Down - Freddie King

[GeronL]

I prefer the ConservativeCave

[GeronL]

Six Flags in Arlington TX will now sell beer. Watch the Baptists stop going and revenue drop.

[GeronL]

somewhere around 3,000 I guess

[Centurion2000]

Six Flags in Arlington TX will now sell beer. Watch the Baptists stop going and revenue drop.

Wonderful, so it gets even lower rent and more ghetto. Great place to take the kids /sarc

[GeronL]

remember when buyouts caused prices to surge?

[GeronL]

when Irving went wet, the shopping carts and beggars were first spotted within a week.

wonderful.