The sale of Collins & Aikman‘s assets is not going as well as expected, causing the bankrupt auto supplier’s bonds and bank debt to slide, said a trader. Another dealer said the market anticipates the company’s earnings will be much lower than previously thought. Collins & Aikman’s 10 3/4% ’11 bonds dropped six points to 15. Its $400 million term loan “B” plunged 15 points to 73. Collins & Aikman is in the process of selling assets related to its automotive fabrics business. The company decided in April to exit and unwind most of its fabrics business after failing to find a buyer for the unit (CIN, 7/06). A trader said the company has received bids for assets that are lower than what it had expected. In mid-July, Collins & Aikman’s bonds dropped four points to 25 as the company projected lower estimates for the sale of its assets (7/06). A spokesman said the company continues to explore the divestiture of its assets, but would not comment on bids the company has received.
