For two months, legendary activist investor Carl Icahn has been on the defensive after a short-seller attack sent shares in his investment company down roughly 40%, raising alarms at a handful of major banks that had lent him money as the value of their collateral fell.
Now, after months of negotiating with his lenders, the 87-year-old billionaire is aiming to put the episode behind him and limit potential fallout from future attacks.
Icahn and the banks finalized amended loan agreements that untie his personal loans from the trading price of his company’s shares—a key risk raised by the short-seller—increase his collateral and set up a plan to fully repay the loans in three years, the company said Monday, confirming an earlier report by The Wall Street Journal. The only thing that could now trigger a so-called margin call is movement in the net asset value of his company’s investments, which include companies and stocks.
Read the full story on The Wall Street Journal here.