Carl Icahn acquired 9,705,373 shares in the quarter that ended on 12/31/2009, which is 9.33% of the $2.87 billion portfolio of Icahn Capital Management LP. The shares resulted from CIT’s pre-packaged bankruptcy reorganization.
Icahn provided the following on the re-organized CIT:
We played a very active role in helping to drive and enhance the value of CIT’s prepackaged plan of reorganization. We believe we were the Company’s largest individual creditor and we exerted our rights to ensure that the reorganized Company was best positioned to succeed financially and structured from corporate governance perspective to drive accountability. Specifically, we were influential in demanding that the new CIT board world be comprised of a majority of new directors nominated by existing bondholders, that the old management team be replaced and that significant cash flow weeps be put in place to help ensure that CIT prudently would down activities at the holding company and returned money to bondholders while allowing an appropriate runway to attempt to fund its most valuable business platforms from its bank through a diversified, low cost, stable deposit funding model. We believe that our involvement in CIT helped to consummate a quick restructuring and did so in a manner that substantially increased the recoveries to bondholders.