Billionaire Carl Icahn says he offered a $6bn loan to stricken US lender CIT
Corporate raider Carl Icahn said he offered to underwrite a $6bn (£3.7bn) loan to CIT Group and complained that trading between the troubled lender and its largest creditors was harming other bondholders.
In a letter to CIT’s board yesterday, Icahn said the cash-strapped commercial lender is offering certain large bondholders the opportunity to purchase $6bn in secured loans well below their fair market value.
The billionaire investor, who has made himself a champion of improved corporate governance, said CIT’s offer comes at the expense of thousands of smaller bondholders who would not have the same opportunity.
In order to purchase the loans, the large bondholders would be required to vote in favour of the company’s proposed exchange offer or its plan of reorganisation.
“This is a bad-faith attempt to buy votes for the company’s exchange offer/plan of reorganisation,” Icahn said, adding that he saw no reason why the current CIT board should continue to control the company.