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CIT and Icahn agree on restructuring plan


    NEW YORK (Reuters) - Billionaire investor Carl Icahn, who had challenged CIT Group Inc's restructuring plan, said on Friday he was now backing the company's pre-packaged bankruptcy and would provide an additional $1 billion in credit to the lender.

    The cash-strapped commercial lender that has been struggling to avoid bankruptcy said the additional credit from Icahn could be drawn as debtor-in-possession financing in the event of a bankruptcy.

    CIT said an independent ballot company was counting more than 150,000 investors' votes on its restructuring plan and a possible debt exchange.

    Icahn was not available to comment beyond his announcement.

    CIT shares, after being halted, reopened down 10 percent at 87 cents.

    (Reporting by Elinor Comlay)