Carl Icahn Speaking at Yale in Robert Shiller's Class (2008), He's Trying To Block a Pre-Packaged CIT Bankruptcy (Bloomberg Video)

I saved this link a while ago and forgot to put it up. Here is Carl Icahn (hedge fund manager ($IEP), corporate raider, blogger, shareholder warrior) speaking to students at Yale in Robert Shiller's class. Date: 10/28/2009.



Source: Open Yale Courses: ECON 252: Financial Markets (Spring, 2008)

Here he is out of the classroom, trying to print money on his CIT Group debt. He owns $2 billion (face value) of $CIT debt and it's on the brink of a pre-packaged bankruptcy.

He's trying to make moves to prevent an artificial reorganization. From this Bloomberg article, CIT is offering to swap existing debt for new debt/equity at 70 cents on the dollar. The CEO said debt could "fetch" 6-cents on the dollar if it fails! Icahn is willing to take a risk here and tender everyone's debt at 60 cents on the dollar to block a pre-packaged bankruptcy. He thinks debt can realize more value in a traditional reorganization. A lot of money is on the line here. It could get messy...

Previous post on 10/19: CIT 3/2011 Bonds at $55, CDS 40bps, Icahn Offers $6 Billion Loan.

Icahn Says He's `Very Nervous' About CIT Debt Exchange (BloombergTV)
Icahn Provides Financing Commitment To CIT (WSJ)
Icahn Makes Appeal to Small CIT Bondholders (NYT)
Icahn Offers CIT a $4.5 Billion Loan at 11th Hour (Bloomberg)
Icahn Acts to Neutralize Scare Tactics of CIT Group; Announces Tender Offer for Smaller Holders (Reuters)