Goldman Sachs, CIT Reach Deal to Cut Credit Facility

CIT Group Inc., the 101-year-old commercial lender trying to avoid collapse, reached a deal with Goldman Sachs Group Inc. to reduce a $3 billion credit facility to $2.13 billion and keep the line open should CIT file for bankruptcy.

In exchange, Goldman Sachs received $285 million in termination fees, New York-based CIT said today in a filing with the U.S. Securities and Exchange Commission. Under the terms of the two companies’ original agreement, Goldman Sachs would have been due a $1 billion termination payment to close the credit line after a CIT bankruptcy.