According to an article published by the Associated Press, the billionaire investor, and bondholder Carl Ichan agreed today to support CIT's restructuring and provide it with a billion dollar credit line- even if they do file for bankruptcy.
For weeks Ichan has been chomping at the bit on CIT's restructuring heels- even offering to buy minority debt holders at sixty-cents on the dollar.
On Wednesday, CIT got a $4.5 billion line of credit from lenders and bondholders; in addition to the $3 billion in financing provided earlier this summer.
Yesterday marked the final countdown, as CIT bondholders could agree to a debt exchange for new debt terms and stock- but the results of the vote are still pending.
Goldman announced this morning it would shave some debt off the top, in exchange for a fee, of course.
This afternoon, Ichan changed his views on the offer after CIT agreed to changes- namely its decisions regarding the board of directors if it files for bankruptcy.
The CIT Group is the financier to some 2,000 venders which supply over 300,000 retail stores- according to the National Retail Federation.
With all the funding, lines of credit and promises- its like Christmas or Chanukah for the debt riddled CIT Group.
But they'll still file for bankruptcy- or "shoot their eye out... kid..." like Ralphie in A Christmas Story.