STAMFORD, Conn. GE Capital Corp. and Goldman Sachs Group Inc. said they had agreed with creditors of Finova Group Inc. to provide $7 billion to the bankrupt finance company in an effort to derail an offer from Warren Buffetts Berkshire Hathaway Inc. and Leucadia National Corp.
The plan must be approved by the bankruptcy court, said GE Capital spokesman John Oliver. Finova filed for Chapter 11 bankruptcy protection on March 7 as part of a $6 billion agreement by Berkshire and Leucadia to bail out the lender. Weve seen the headlines, said Marc Hamburg, Berkshire Hathaways treasurer. No comment.
Finovas bankruptcy filing is the largest in Delaware history and the seventh-largest ever, according to BankruptcyData.com.