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Lending

Icahn backs CIT restructure plan

October 31, 2009|Times Staff and Wire Reports

Commercial lender CIT Group Inc. said that billionaire investor and bondholder Carl Icahn had agreed to support its restructuring plan amid reports that the New York company might soon file for bankruptcy protection. Icahn also agreed to provide CIT with a $1-billion line of credit.

Icahn has been an outspoken critic in recent weeks of CIT's plan to restructure its debt in an effort to avoid collapse. CIT, one of the largest lenders to small and mid-size businesses, has been trying to reduce its near-term debt burden by $5.7 billion.

On Wednesday, CIT received a $4.5-billion line of credit from lenders and other bondholders who had already provided it with $3 billion in financing over the summer.

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