GE Unit Signs Deal With Finova Creditors
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General Electric Co.’s financial-services unit and Goldman Sachs Group Inc. signed an agreement with creditors of troubled commercial lender Finova Group Inc. to provide about $7 billion of liquidity for its Chapter 11 bankruptcy protection.
GE Capital also said it will enter a servicing agreement to manage the company’s assets. The move, if approved in U.S. Bankruptcy Court in Delaware, means GE Capital could effectively seize control of Finova despite its management’s previous agreement to a $6-billion reorganization plan struck with Berkadia, a joint venture between Berkshire Hathaway Inc. and Leucadia National Corp. Scottsdale, Ariz.-based Finova previously rejected an offer from GE in favor of the one from Berkadia.
However, creditors had complained that offer wasn’t high enough and that terms favored Berkadia.
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