Bloomberg reported that CIT Group has asked a bankruptcy judge to block a tax-related claim asserted by Tyco International. Tyco acquired CIT in 2001 and sold its stake through an IPO the following year.

Citing court documents, Bloomberg says the companies entered into an agreement as a condition of that sale that Tyco claims allowed it to write off CIT’s losses. At the time, Tyco Capital’s net operating loss and other tax benefits were about $794 million at the federal level. According to the Bloomberg report, that tax agreement was rejected under the terms of CIT’s reorganization plan.

In a related story, the Wall Street Journal notes that if the court doesn’t prevent Tyco from moving forward, an arbitrator could decide if the claim is valid as soon as next month.

To read the full Bloomberg story: click here.