Icahn Claims Close to Par Value in CIT Bonds (CIT, GS)
CIT Group, Inc. (NYSE: CIT) has had a lot of news this week. A lot this year for that matter. Last night there was word that it had reached a loan agreement with Goldman Sachs Group (NYSE: GS). And…
Icahn is effectively calling for bondholders to unite and not vote in favor of a prepackaged bankruptcy plan. He noted that this would put the bondholders’ assets “at peril” and called a traditional bankruptcy “calamitous.” The open letter is still calling for a new board of directors and calling for a new senior management team.
Icahn noted that its balance sheet has assets which will generate huge cash inflows over the next few years. Icahn even notes that if assets are sold in a controlled way that the bonds “are worth par and in no event less than 80-85% of par value.”
You can read Icahn’s full open letter here.
JON C. OGG
OCTOBER 23, 2009
Contact [email protected] for any questions or corrections.
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