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.

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