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CIT: New Developments For Small Business Lender Include Restructure & Preparation For Voluntary Bankruptcy

October 2, 2009

Struggling lender CIT has potentially found new financing, and this morning approved a restructure that would see current bondholders either receive restructured notes or preferred shares in the company stock. The offer for the note swap will expire on October 25, 2009, and if it is not accepted, the company may have no choice but face bankruptcy. This restructure is a strategy that will hopefully slash $5.7 billion off the company books. TARP gave the company $2.3 billion a few months ago, but that was evidently not enough for a rescue. CNN, ReutersThe New York Times and Bloomberg all have articles on the story.


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