Freeport-McMoran’s pending sale of its FM O&G entity’s Deepwater Gulf of Mexico assets to Anadarko has rankled bondholders. The gripe centers on whether or not covenants allow the company to pull off the deal without having the underlying bonds travel to the buyer.

Debtwire’s Private Equity Head Soma Biswas and Covenant Analyst Brian Darsow from Xtract Research breakdown the polarizing standoff, and discuss what may be the next shoe to drop