Package Carrier LaserShip Eyes Debt Tactic That Riles Creditors
- Company gauging interest in loan of as much as $450 million
- S&P cut outlook on junk rating, seeing growing default risk
This article is for subscribers only.
LaserShip Inc., a struggling package-delivery company owned by private equity firm American Securities, may seek to raise cash by borrowing against assets that have already been used as collateral for other loans, according to people familiar with the matter.
The step, if taken, would make it the latest distressed company to utilize the tactic, which typically draws the ire of existing creditors because it erodes their claim to the assets if the company goes bankrupt. The threat of that alone can also strengthen a company’s hand in negotiations with creditors.