Billionaire investor Carl Icahn, clarified terms of a tender offer for CIT Group Inc.'s (CIT) notes, part of an effort designed to foil restructuring plans for the embattled lender that he says hurts small noteholders.

Icahn, who says he is CIT's largest noteholder, said his tender offer was extended to all noteholders of retail CIT obligations. He reiterated the offer was designed to aid smaller bondholders, whom he said had been hurt by the reorganization.

"While it is our intention to benefit the multitudes of smaller CIT noteholders, who we feel have been disadvantaged by CIT's restructuring process our tender offer is in fact open to all holders of those notes, large and small," Icahn said in a press release.

To qualify for the tender, noteholders must vote against CIT's restructuring plan by 11:59 p.m. on Thursday. They will then be eligible to get Icahn's offer of 60 cents on the dollar for their holdings.

CIT faces a Thursday deadline in which bondholders will vote on either a $31 billion debt exchange or a plan to file for a prepackaged bankruptcy. Under the bankruptcy plan, CIT would seek Chapter 11 protection with support from enough creditors to quickly get a reorganization plan approved, and emerge from bankruptcy in one or two months.

-By Andrew Morse, Dow Jones Newswires; 415-439-6402; andrew.morse@dowjones.com