What's wrong with EnQuest bonds?

[AJS-]

Never actually invested in bonds so not sure if I'm missing something but EnQuest bonds look like reasonable value to me. Trading at about 90p with a 5.5% coupon, which gives a 7% yield, and mature in 2022.

http://www.fixedincomeinvestor.co.uk/x/bondchart.h...

Why have they dropped off a cliff recently? As far as I know EnQuest is fairly stable with producing assets. I guess the shares will have been hammered by the oil price drop but doesn't seem to be in any danger of going under. Or is it?

I know that bond prices will probably fall if/when interest rates rise, but if you're prepared to stay in until maturity it looks like a pretty good bet.

What am I missing?

[AJS-]

Hmm, so the relatively low price reflects perceived likelihood of default? And is default basically bankruptcy or are there different levels of default/bankruptcy?

Can't really find a very clear answer on google! Thanks

[AJS-]

Interesting! Thanks. Still half tempting as it's a decent return but not very keen on losing the lot.