More Lawsuits

Icahn's investment partnership, an investor in the buyout of Realogy Corp. is suing to prevent the company from refinancing $1.1 billion in debt (a workout).  The $1.15 billion in old debt, below, Ichan's will be transformed into $500 million new debt, of which $237 is senior to Ichan's.  Not so fast, says Icahn, the move violates my debt covenants.  He, in essence, is unwilling to take a hit in the workout.  Realogy with threaten bankruptcy as an alternative and the parties with play a game of chicken in a tense negotiation.  Ichan will win.