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What happened to that derivative contract CIT had with Goldman Sachs? Did CIT have to pay the bank $1 billion to go bankrupt?

April 26, 2017Bank bankrupt cit contract derivative goldman happened pay sachs

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What happened to that derivative contract CIT had with Goldman Sachs? Did CIT have to pay the bank $1 billion to go bankrupt?

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CIT and Goldman reworked the agreement last week. They trimmed the $3 billion facility to $2.12 billion, shedding the unused portion, and CIT made a $285 million payment. Goldman pledged not to pull the line, now fully drawn, in bankruptcy. CIT tapped the $4.5 billion added to its credit facility to pay Goldman.