10/30/2009 - CIT Group Inc. (NYSE:CIT) and Carl Icahn have reached a tentative deal that may resolve a recent feud of the company's restructuring plan, according to sources familiar with the matter. The company has agreed to accept $1 billion in backup financing from Icahn that would be used if it needs more than the $4.5 billion that it recently received from other bondholders, the sources said. Icahn has also agreed as part of the deal to back down while the company restructures in bankruptcy court. The results of CIT's debt-exchange offer have not yet been finalized but people close to the matter think that it has likely failed. The sources also reveal that the company plans to file for bankruptcy in New York as soon as Sunday night or early Monday and is poised to enter bankruptcy with enough creditor support to approve its reorganization plan and shorten the time it is filed under Chapter 11. CIT and Icahn declined to comment.

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