Credit Crunch Hits Valley: Merrill Demands Payment on $1.5 Billion Agilent Loan

Still don’t believe the credit crunch will hit the tech world? Merrill Lynch (MER) is requiring Santa Clara-based Agilent Technologies, a measurement and instruments maker spun out of HP many years ago, to repay a $1.5 billion loan three years ahead of schedule.

Agilent took the original loan from an undisclosed third party, backed by Merrill. Now the original lender can’t cover, so the not-exactly-swimming-in-cash-itself Merrill is calling it in. Agilent has to repay the loan by July, and a spokesman says that the company has $3 billion of cash on hand.

What happens to debtors who aren’t flush with money?

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