NEW YORK–Investor Carl Icahn has sent a letter to the board of directors of CIT Group offering to underwrite a $6 billion loan to the troubled financial-services firm.
In a company statement, CIT acknowledged the receipt of Icahn’s letter, and said it intends to ask the investor for more information on his proposal. The statement did not comment on the terms of Icahn’s offer, or on press reports stating that Icahn is seeking a change in CIT’s board of directors.
The statement said CIT has “actively solicited competitive financing proposals and remains open to securing financing on the most beneficial terms.”
CIT has submitted a filing to the U.S. Securities and Exchange Commission detailing its prepackaged plan of reorganization. In a statement released earlier this month, the company said the plan includes exchange offers for certain unsecured notes, and that the plan would enhance its capital levels, improve its liquidity and return CIT to profitability. The company also said if it doesn’t achieve these objectives, it may decide to file for Chapter 11 bankruptcy protection.