Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Monday, January 28, 2008

Sallie Mae Settles Suit for New Financing

Sallie Mae settled its lawsuit against the former buyers who backed out of the $25 billion buyout and claimed that new legislation cutting federal subsidies to student lenders was a material adverse change that allowed them to walk away without paying the $900 million termination fee.  The defendants, who include the J.C. Flowers private equity firm and banks JPMorganChase and Bank of America, will refinance about $30 billion in debt that is falling due soon, an arrangement that will ease Sallie Mae's credit troubles.  NYTimes, Sallie Mae Settles Suit Over Buyout That Fizzled

http://lawprofessors.typepad.com/securities/2008/01/sallie-mae-sett.html

News Stories | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00e54ff860308833

Listed below are links to weblogs that reference Sallie Mae Settles Suit for New Financing:

Comments

Post a comment