Carl Icahn sues Philip Falcones Spectrum Brands Inc?

I just wanted to point out Carl Icahn’s relationship to Harbinger Group Inc as I personally have found have been intrigued by the relationship between the two.  For example Icahn’s purchase of 300 million worth of Debt in Falcones LightSquared, as well as a rumor Icahn brewed himself in that he was going to buy Falcone out of his Ferrous Resources stake.

 I found a lawsuit where Areh(Ray) LLC is suing Spectrum Brands Inc           

Areh(Ray) LLC vs. Spectrum Brands Inc

 Dane County Case Number 2012CV002813

Plaintiff	Areh(Ray) LLC	Case #	2012CV002813
Defendant	Spectrum Brands Inc	Status	Open
Filed on	Jul 17, 2012	Last Updated	Oct 16, 2012
Location	Dane County, WI	Next Update	None

court-record-report.com

According to this 2009 Spectrum bankruptcy filling, , Areh(Ray) LLC is Carl Icahn

LEASE                        GBPC Headquarters

ADDRESS                   601 Rayovac Drive, Madison, WI 53711

LANDLORD ADDRESS

Areh(Ray) Llc

C/O Icahn Enterprises Holdings LP,

White Plains Plaza

445 Hamilton Ave, Ste 1210

White Plains NY 10601

                                                            http://bankrupt.com

I found information on the mortgage holder of the property,

REAL PROPERTY TAX INFORMATION FOR 2012

PROPERTY ADDRESS: 601 Rayovac Dr

OWNER(S)

AREH(RAY) LLC

C/O ICAHN ENT HOLDINGS

142 W 57TH ST 5TH FLR

NEW YORK, NY 10019

Mortgage Holder: CORELOGIC COMMERCIAL

http://www.cityofmadison.com

Incase your wondering what AREH(RAY) stands for; American Re Holdings

http://legistar.cityofmadison.com

I’m not sure what this is all about but it’s certainly but me curious.

Carl Icahn is actually a great case to look as a means of forecasting what’s in store for HRG in my opinion.  Icahn and Falcone have very similar fund structures as far as how they’re laid out as well as the publicly traded separate entity which Falcone essentially owes it zero fiduciary duty.  I think I’ll start referring to it as the bastard fund.

Anyway, aside from the way the fund interests are laid out with public and private, the underlying investments it holds commonly share an additional complex structure.  I was screwing around last week cutting and pasting Icahns interests together, its incompletely and incredibly sloppy but I figured it was still worth sharing.

The red x's are public shareholders, just like Harbinger’s subsidiary Spectrum Brands, both are publicly traded.  Anything on the green line and below are investments in traded companies which have their own structure.  On the left is CVR.  And the right Tropicana Casino.(Obviously this is not complete).

Heres a chart of Icahn’s publicly listed investment company.  This is just the kind of sell off I think we’re going to see here.  A missed coupon, debt downgrade, found guilty of securities fraud, interest rates rise a few bips causing HRG’s Fidelity and Guaranty insurance subsidiary to catch ablaze, the regulators demand Harbinger Group Inc operate as an investment company, Spectrum’s share price declines and its secured debt holders liquidate the pledged shares for money owed…..which really throws the fat on the fire.