Tyco, the US conglomerate planning to break-up later this year, has resorted to drawing on emergency back-up loans amid concerns that it no longer has the confidence of the wider debt markets.

Tyco, which has lost the confidence of many equity investors since announcing plans to break into four business, decided to draw down on $5.9bn (€6.6bn) of back-up loans just days before the option to do so expired. It will use the money to repay all of its $4.5bn commercial paper debt.