CIT, Icahn reach financing deal

In an about-face for the billionaire investor, CIT has reached a settlement with Carl Icahn that will allow the lender to access financing in bankruptcy.

This afternoon, CIT said it had secured a $1 billion line of credit from Icahn that may be used as exit financing in the event of a bankruptcy. Icahn has been fighting to convince other CIT bondholders to vote against a company-proposed debt exchange and a pre-packaged bankruptcy plan.

CIT provides financing to 1 million businesses, including Dunkin’ Brands franchisees.