Sallie Mae agrees to drop suit
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Faced with growing near-term financial pressures, Sallie Mae has dropped its lawsuit against the banks and investors that walked away from buying it in a deal to refinance $30 billion in debt.
The nation’s largest student lender said it would no longer seek a $900-million breakup fee from investors led by private-equity firm J.C. Flowers & Co.
Instead, it has agreed to new terms on $31 billion in financing being provided by seven banks, including JPMorgan Chase & Co. and Bank of America Corp., both part of the buyout group.
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