Carl Icahn unties personal loans from IEP's share price - WSJ

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Carl Icahn unties personal loans from IEP's share price - WSJ
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Carl Icahn and banks have agreed to amend loan agreements that untie the billionaire's personal loans from the trading price of Icahn Enterprises , the Wall Street Journal reported, months after short-seller Hindenburg's criticism triggered a massive fall in the shares of his investment company.

, months after short-seller Hindenburg's criticism triggered a massive fall in the shares of his investment company.

Shares of Icahn Enterprises soared 7.5% in premarket trading on Monday. They are down about 43% since the Hindenburg report came out in May. Icahn will now provide additional collateral, which will total roughly $6 billion, including $2 billion of his own funds, and laid out a plan to repay the loans in three years, the report said on Monday , citing people familiar with the matter.Hindenburg had called Icahn's pledge of about 60% of his IEP stake as collateral for margin loans as risky, which could result in margin calls should the unit's prices decline.

The short-seller accused IEP of overvaluing its holdings and relying on a "ponzi-like economic structure" to pay dividends. It also said IEP units were inflated by more than 75%.Following the amendment, the only thing that could now trigger a margin call is movement in the net asset value of his company’s investments, which include companies and stocks, the report said.

Reporting by Gursimran Kaur and Jaiveer Shekhawat in Bengaluru; Editing by Dhanya Ann Thoppil and Pooja Desai

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