Saks’ Distressed Debt Tumbles to Lows Ahead of Interest Deadline

Saks Global Enterprises’ debt has sunk to new lows in recent days as the luxury retailer faces a more than $100 million interest payment deadline at the end of the month amid sales declines and troubled vendor relationships.

A portion of its first-lien debt subordinated to other lenders was quoted at about 12 cents on the dollar on Friday, down from around 30 cents on Monday, according to broker runs viewed by Bloomberg. The so-called ‘second-out’ portion of the bonds was put in place as part of a June debt overhaul aimed at alleviating the firm’s ongoing financial struggles. ...