CIT, Goldman reach agreement
Posted on October 30, 2009 12:33 PM

Struggling commercial lender CIT Group Inc. said Friday that it reached a deal with Goldman Sachs Group Inc. to reduce a $3 billion line of credit to $2.13 billion and also keep it open, under certain circumstances, should CIT file for bankruptcy.

New York-based CIT paid Goldman a $285 million termination fee for reducing the facility, according to a filing with the Securities and Exchange Commission. The agreement eliminates the unused portion of the credit line, and CIT put up $250 million of extra collateral, the company said.

[link to www.thedeal.com]