NEW YORK, Oct 30 (Reuters) - Billionaire investor Carl Icahn, who had challenged CIT Group Inc's restructuring plan, said on Friday he was now backing the company's pre-packaged bankruptcy and would provide an additional $1 billion in credit to the lender.
The cash-strapped commercial lender that has been struggling to avoid bankruptcy said the additional credit from Icahn could be drawn as debtor-in-possession financing in the event of a bankruptcy.
CIT said an independent ballot company was counting more than 150,000 investors' votes on its restructuring plan and a possible debt exchange.
Icahn was not available to comment beyond his announcement.
CIT shares, after being halted, reopened down 10 percent at 87 cents.
(Reporting by Elinor Comlay) Keywords: CIT/ICAHN (elinor.comlay@thomsonreuters.com; +1 646 223 6116) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The cash-strapped commercial lender that has been struggling to avoid bankruptcy said the additional credit from Icahn could be drawn as debtor-in-possession financing in the event of a bankruptcy.
CIT said an independent ballot company was counting more than 150,000 investors' votes on its restructuring plan and a possible debt exchange.
Icahn was not available to comment beyond his announcement.
CIT shares, after being halted, reopened down 10 percent at 87 cents.
(Reporting by Elinor Comlay) Keywords: CIT/ICAHN (elinor.comlay@thomsonreuters.com; +1 646 223 6116) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.