Carl Icahn may help finance CIT restructuring
20 October 2009
Legendary investor Carl Ichan is likely to help CIT Group Inc secure finances for its restructuring plans and may underwrite an alternative $6 billion loan.
CIT, a leading provider of financing to small businesses and middle market companies, today said Icahn has written to CIT's board of directors on securing finances and offering to underwrite an alternative $6 billion loan.
"This letter is CIT's first indication of Mr Icahn's interest in underwriting an alternative financing and the company intends to ask Mr Icahn for more information regarding his proposal," the company said in a release.
The board of directors of CIT, in consultation with the steering committee of its lenders, has chalked out a comprehensive restructuring plan designed to enhance its capital levels, bolster liquidity and return the company to profitability, the release said.
Over the past several months, CIT has been looking for competitive financing proposals and the release said the company remains open to securing financing on the most beneficial terms.
CIT said it has already filed a detailed disclosure statement containing the amended offering memorandum and solicitation of acceptances of a prepackaged plan of reorganisation with the US Securities and Exchange Commission.
A bank holding company with more than $60 billion in finance and leasing assets, CIT provides financial products and advisory services to small and middle market businesses. Based in New York, the company operates in more than 50 countries across 30 industries, providing services worldwide.