Joel-Oskar

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On Thursday, the company drew down the $3 billion in backup credit lines to its commercial paper. To Wall Street, this was instant confirmation of Enron’s desperate straits. Virtually all large companies have such backup credit as part of their financing structure, and they’re technically entitled to tap it whenever they want. But no lender ever expects—or wants—it to be used, since the debt is totally unsecured.
The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron
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