US oil explorer's bonds plummet 31% in a week

New York

BOND traders are signalling that Pacific Exploration & Production Corp may not be able to avoid a default.

Pacific's US$4.1 billion of bonds have plummeted 31 per cent in the past week alone, the biggest decline in the US$5.8 trillion market for dollar-denominated company debt, index data compiled by Bloomberg show. Its notes due 2021 had the deepest losses, falling to a record 35 cents on the dollar on Sept 22.