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Tuesday, February 12, 2008

Credit Crunch News

by Calculated Risk on 2/12/2008 08:50:00 PM

From the WSJ: Delphi's Bankruptcy Exit Hits a Snag

The $6.1 billion plan to pull auto-parts supplier Delphi Corp. out of bankruptcy protection was in jeopardy yesterday ... J.P. Morgan Chase & Co. and Citigroup Inc.'s Citigroup Global Markets, are having difficulties syndicating the loan to other lenders...
Luckily for the banks, this won't become a pier loan:
J.P. Morgan and Citigroup are bound only on a "best-efforts basis" to arrange the loan. That is a lesser commitment than the "material adverse change" clause, which binds banks to a deal barring only a steep decline in a client's performance.
And over in the Muni market from AP: Failed Bond Autions Total $6B Tuesday

These failed auctions are probably related to the problems with the monoline insurers. The Credit Crunch continues ...