Is Countrywide’s next stop DIP financing?

After liquidity trouble, Countrywide was cut short in the commercial paper market – hence yield skyrocketed. They found a savior in Bank of America, and that deal likely included some restructuring directives, including but not limited to canning up to 12,000 employees.

Now it looks like it may not be enough – the company needs yet more capital to keep the wheels spinning, and the WSJ is now suggesting that the Bank of America “coup” could turn out less than angelic.

I’ll take a wild guess that Countrywide’s longer-term securities experience a little bump in interest, and that the next turn in this saga’s financing story is accompanied by a yellow sign with the letters “D-I-P” imprinted on it.

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