George S. May Business Blog

CIT $1 billion from Carl Icahn, Icahn Capital LP

As a part of their restructuring plan, CIT has entered an agreement with Carl Icahn to secure a $1 billion line of credit from Icahn Capital LP to provide themselves with supplemental liquidity as they go through with the plan.

Icahn Capital has given CIT up until the new year to draw the new line of credit. Drawing the cash is, of course, subject to definitive documentation and other customary conditions, and may be drawn as debtor-in-possession financing in the event of bankruptcy. CIT has a few other sources of liquidity, including a $4.5 billion expansion facility which will be used to ensure its ability to serve its existing small business and middle market customers.

Related posts:

1. Ares Capital buys Allied Capital for $648 million Allied Capital has agreed to sell itself for $648 million in stock to Ares Capital, a NY investment management company. Allied’s shareholders will receive 0.325...


2. CIT Group Inc. will live to see another day — $3 billion in financing to come from bondholders News is swirling about that CIT Group Inc. has signed a deal to receive $3 billion in rescue financing from a group of bondholders and...


3. GM Europe — Nick Reilly in, Carl-Peter Forster OUT! As expected, Carl-Peter Forster of General Motors, will be stepping down from his position of CEO of GM Europe. His replacement, Nick Reilly, will assume...


4. GMAC is getting another $3.5 billion — Merry Christmas! Reuters reports that GMAC is “close” to getting another $3.5 billion from the US government. GMAC took $12.5 billion in December of last year. The...


5. Samberg, Pequot Capital shuts down after S.E.C. reopens 3 year old investigation On the heels of an investigation launched by the S.E.C., news has emerged that Arthur Samberg’s Pequot Capital Management Inc. will be shutting down. The...