Berkadia Boosts Offer to Finova’s Creditors

Warren Buffett’s Berkshire Hathaway Inc. and Leucadia National Corp. sweetened their joint offer to creditors of Finova Group Inc., trying to fend off a rival bailout plan for the bankrupt finance company.

The Buffett-Leucadia venture, known as Berkadia, offered unsecured creditors about 64 cents per $1 of debt before the bankruptcy filing and 3 cents for each $1 of post-bankruptcy claims, according to a Finova statement. That’s up from 60 cents earlier in May and an initial offer of 54 cents.

Creditors last week reached a $7-billion agreement with General Electric Co.’s Capital unit and Goldman Sachs Group Inc., pitting them against management and Berkadia. Though terms were not disclosed, analysts estimate the upfront cash payment would be around 72 cents per $1 of debt, less than management’s offer with Berkadia.