Sea Containers Ltd (fka SCRA)

[finbar99]

Fed dropped the overnight rate, but thats not the same as commercial lending. Take a look at Solutia - their lenders backed off - same at Dana - companies on the verge of exit are now getting stuck in Chapter 11 for lack of exit financing.

its being written about quite frequently as of late:

http://bankruptcy.law360.com/Members/ViewArticlePortion.aspx?Id=46330&ReturnUrl=..%2fsecure%2fViewArticle.aspx%3fId%3d46330

From what I hear, its the same outside of bk - commercial entities needing to refi expiring debt are finding the banks unwilling to loan - if you think about it, the banks already have adequate capilization issues of their own to deal with. I'm not saying this is a definite problem for SCRA, its a potential problem and alot depends on how much they need to borrow - fortunately for SCRA, they will probably have better access to European and Asian banks than many completely domestic organizations would have.