CIT Group announced that it has reached an agreement with activist investor Carl Icahn that will provide a $1 billion line of credit to the troubled New York-based finance company.

The move could be a sign that the company plans to file for bankruptcy soon.

The new line of credit can be drawn as debtor-in-possession financing if CIT enters into bankruptcy. It must be drawn on or prior to Dec. 31.

Earlier this week, CIT received another $4.5 billion in new financing from a group of lenders that include current bondholders. The new $4.5 billion is an expansion of its current $3 billion senior secured credit facility.

Some of the exchange offers that serve as part of CIT Group’s restructuring plan expired Thursday evening, and the company is expected to release the official results of the exchange offer over the next few days. A company spokesman declined to comment.

CIT Group announced its restructuring plan Oct. 1 and amended it, extending the expiration date on one of the offers and increasing the interest rate payable on notes.

The move came just over a week after the company first amended the plan, with changes such as a cash sweep mechanism to accelerate repayment of new bonds and a shortening of the maturities of new bonds, as well as other measures.

Icahn had urged bondholders to reject the plan, and offered to buy out smaller bondholders at 60 cents on the dollar if they vote against the CIT restructuring plan.

CIT’s plan requires bondholders to exchange their bonds for new equity worth between 70 cents and 90 cents on the dollar. CIT disputed Icahn’s claims and warned bondholders of heavier losses if it winds up in bankruptcy.

Last week, Icahn sent a letter to CIT's board of directors offering the company a $6 billion loan as an alternative to the restructuring proposal, which he described as unconscionable.

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