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FBN’s Charlie Gasparino with the latest on the Knight Capital glitch and fallout, including JPMorgan suspending its line of credit.
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Week it's been a volatile week.
Likely because of Knight capital and today we do have new details on the story and concern is specifically about the line of credit Charlie gasping as -- JPMorgan suspended -- line of credit in recent days Charlie also reporting.
Night considering the issue of the convertible bonds to make up the difference is all started two days ago after a computer glitch cost the company more than 400 million dollars.
-- joins us now with the latest -- An interesting thing we should -- -- line of credit is its.
JPMorgan had with them and some of this is a term of art -- was a revolving line of credit where you can sort of paid.
It's and take money.
Paid off at a certain time and was there for you and you needed night from outsource its on the Fox Business that -- violated the confidence that the -- guarantees that sort of the standards of that line of credit with.
With JPMorgan and JPMorgan pulled so what do we have today we have today reports that they have and found another line of credit to get it through the day.
I should point out that nobody knows what bank taxes which really just on its face not saying it's -- true.
That they have -- -- on its face makes me dubious but just so you know we don't know the bank that the into the bank has not been reported it will take you.
That JPMorgan pulled its line of credit in this bank that read that the allegedly had the line of credit at least that's what nineties telling people.
You know it is not you -- -- so.
You know they essentially got if they have one so we know that because they're saying we we have a new line of credit there's no other -- and we should and -- Asia Asia's trade with us -- -- is also don't be good.
We'll start a trade with it can look the stock is up although the stock it's kind of off its highs of one I think -- -- -- 35360.
I could be wrong and that but he went higher it's -- -- that now it's just it's at 320 it's obviously.
Up way up from last night when we reported that one of the big one of the potential buyers of night -- too.
Was out and the stock went down to 218 I think now with backup and about a buck that's it pretty sizeable move.
On this notion of a lot of credit we should point out that brokers -- bankers are tell the Fox Business Network.
That if they did the deal that's going to be done that since they got this thing and it looks like the market believes they got it.
Stock is improve beginning get through the day the real action will likely occur over the weekend where they will do want -- three things.
It will it will get financing that -- two to pay the bills which is gonna come Monday explain what that -- They will -- they will be taken over by someone else that would help them pay the bill.
Or -- will file bankruptcy.
And bodily within those three conditions there's lots of leeway.
A financing could -- a lot of things could be the convertible bond deal with director clearly talking about what's -- selling lots of assets.
Why do they have to do this stuff well when they unwound that -- -- trade that world talk about it's a five billion dollar trade.
It was supposed to take place over series of weeks it took place over loosely over a couple days -- a pay it back.
When they have to pay that back if the payback three days from the -- happens at school three plus three -- T plus three it's a settlement date.
It occurred Wednesday right.
Thursday.
Friday.
Monday it has to be paid money that's why Monday's big day if they don't have that money by Monday.
And the shut down cause erratic cash.
-- us this revolving line of -- this line of credit they have can be extended.
Which I don't think so I hear it's a one -- so that's -- we are now still kind of an interesting set of circumstances for for night.
The market start to bet that they're gonna survive the bonds are trading up to 75 cents on the dollar -- Which is not exactly depression that's not as that would -- -- that's that's getting better the stock is up.
But I'll tell people that you know I would proceed with this thing when you're betting if you buy and stocky looking at the bonds the CBS what are you doing.
Proceed with caution does a lot of gray area 354 by the way it was intraday high ninety -- -- so it's off its its intraday high.
And you know the the market is just saying what safe and I think.
It could be wrong sometimes -- stuff happens on for late Friday nights we usually doesn't.
It did rubber meets wrote of -- and what's interesting about this in they needed time.
Now they have two days of kind of you know we -- stuff there but bankers -- bankers ceremonial they're working -- the clock when it sent them.
To make something that we'll watch for your tweets Charlie okay.
