iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Icahn Might Need to Inject Capital to Save Firm

What a shit show this is. Icahn and his stupid commodity bets, long egregious amounts of CHK, LNG and FCX, have wreaked havoc on his publicly traded net worth inflator, aka IEP. He owns 90% of it and now S&P is threatening to slash the credit rating to junk status, due to its nefarious holdings in which the value have been subjugated to ruinous losses.

These and other bad bets have led Standard & Poor’s to warn it may downgrade Icahn Enterprises (IEP) to junk territory within the next 90 days.

S&P says Icahn’s firm had just $182 million of cash as of the end of September, down from $1.1 billion the year before. At the same time, Icahn Enterprises lists $13.4 billion in total debt, of which $1.2 billion is due early next year.

All of this has led S&P to posit whether Icahn might inject personal capital into IEP to firm up its balance sheet. This is a delirious reversal of fortune, coming from the man who made his biggest gain of his life just a few years ago in NFLX. Since then, and inexorably so, Icahn has performed miserably, conducting his fund like a man driving a speedboat into a wall of dynamite.

Even still, Forbes lists his net worth at $19 billion.

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4 comments

  1. boyaj

    As I wrote in a previous post, I would’ve figured he’d be hedged. If S&P gets this type of insight into his business and funds, he may be much less hedged than I posited, if at all.

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  2. traderconfessions

    Perhaps he’s distracted by the prospect of becoming Trump’s China negotiator. He’s yuge.

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  3. matt_bear

    he can cover all of the debt and still be worth $5 billion. Boo fucking hoo.

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  4. zerosum

    The man is a player and he has a galactic-sized stack of chips. He can wait it out. although the reaper might get him before commodities recover.

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