Carl Icahn, the activist investor, on Monday offered to underwrite a $6bn loan for CIT Group, the troubled US lender, as he accused CIT of overpaying for a new loan from existing lenders to win support for its reorganisation plan. In a letter to CIT’s board, Icahn criticised the lender for offering to sell bondholders $6bn of secured loans at well below market value. The offer, which would cost CIT $300m in fees and carry a 9.5% interest rate, is contingent on bondholder support for CIT’s restructuring plan.

This entry was posted by Gwen Robinson on Tuesday, October 20th, 2009 at 5:10 and is filed under Capital markets, People. Tagged with carl icahn, CIT. Edit this entry.