A report in the Financial Times' Sunday edition said that in the case of a Chapter 11 bankruptcy protection filing by the distraught commercial lender CIT Group files, the financial services provider Goldman Sachs Group will receive a $1 billion payment, while the US payers would have to bear a loss of $2.3 billion.

The Goldman Sachs' payment forms part of its $3 billion rescue package it extended to CIT in June last year.

This arrangement between Goldman and CIT came five months prior to the Treasury's $2.3 billion purchase of CIT preferred shares, under the federal government's Troubled Asset Relief Program (TARP).

According to the information forwarded by the inside sources, the terms of the agreement with Goldman state that in case CIT defaults or goes bankrupt, it "would be required to pay a make- whole amount" that totals $1 billion.

While CIT said last week that it would negotiate with Goldman about "an amendment to this facility," Goldman stated: "This would not be a windfall payment. The make-whole payment is simply the present value of the spread to be earned over the life of the facility."

Currently, CIT is endeavoring to restructure its capital composition, and has launched exchange offers for certain unsecured notes. A voluntary bankruptcy would be on the cards for the company if it fails to achieve the objectives of the proposed exchange offers.