CIT draws on $7.3 bln bank line

NEW YORK (Reuters) - CIT Group (CIT.N: Quote, Profile, Research) said on Thursday it was drawing on a $7.3 billion bank line to help conduct daily operations, a move that highlights the commercial finance company's difficulty in raising cash to pay off debt.

CIT said it was using the bank line to repay debt maturing in 2008, including commercial paper, and to finance its main businesses.

Drawing on bank lines is often seen as an emergency action for companies unable to get financing elsewhere.

Prior to the announcement, CIT's shares were down 33 percent on rumors the company was having trouble financing itself.

(Reporting by Dan Wilchins; editing by John Wallace)