What would cause Icahn to offers CIT Group $6 billion loan?”

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What would cause Icahn to offers CIT Group $6 billion loan?”

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Billionaire investor Carl Icahn offered CIT Group Inc. a $6 billion loan as an alternative to what he called an “incompetent and unconscionable” proposal by the board of directors to avert collapse. Icahn, who said he is CIT’s largest creditor, offered to underwrite a loan to the New York-based company that he said would save as much as $150 million in fees compared with the bank’s proposed financing. CIT last week changed the terms of a proposed debt exchange to swap $29 billion of securities. The plan seeks to reduce debt by at least $5.7 billion after CIT was locked out of the unsecured debt markets it relies on for funding. At the same time CIT pursues the out-of-court debt swap, it’s also asking bondholders to vote on a prepackaged bankruptcy plan. “This loan is a bad-faith attempt to buy votes for the company’s Exchange Offer/Plan of Reorganization, since all prospective lenders must vote their CIT debt in favor of the company’s plan in order to receive an allocation of the new l

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