Carl Icahn's Stock Plunges 40%
  • 10 months ago
Carl Icahn, the legendary activist investor, has agreed with significant banks to amend his loan agreements and address the fallout from a short-seller attack on his investment company. The attack caused a 40% drop in the company's shares, leading to concerns among lenders whose collateral value decreased. The amended loan agreements decouple Icahn's loans from the trading price of his company's shares, increase his collateral, and establish a three-year repayment plan. The only trigger for margin calls now is movement in the net asset value of the company's investments. Before the attack, Icahn Enterprises' shares were trading above $50, but they have since fallen to below $30. Icahn owns about 85% of the company, and individual investors primarily hold the rest.
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