Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Jack of All Trades who wrote (78087)	6/12/2002 6:58:39 PM
From: Zeev Hed	Read Replies (3) of 99280

A big chunk of the debt will "go" with CIT, CIT is one of the reason they need so much debt, it is a finance company that borrows (hopefully) at a low rate and lends it out for the spread. I have no idea how much of the debt. The problem, of course is that TYC bought CIT for $10 B and as soon as they sell it, they'll have to recognize the difference ($5 B plus) as an immediate loss.As long as their was "trust" in TYC, the debt was no problem, but once money market were closed to them and they could not roll over commercial papers, it was clear that they'll be in deep trouble, a whiff of these potential future problems (#reply-16905027) was the reason TYC got kicked out of the core in Mid January. Good turnips call on that one, in hindsight. Zeev

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