Christa Hoyland reports at QSRWeb.com that Commercial lender CIT Group Inc. filed for bankruptcy Sunday to cut $10 billion in debt after a U.S. bailout and debt exchange offer failed this summer. CIT said operations will proceed as normal and it plans to exit bankruptcy next month, according to a story by Bloomberg.
Read More »Who loses in the CIT bankruptcy? That’s easy: all of us taxpayers. And who triumphs? Private enterprise in the form of Carl Icahn. Gary Weiss writes in Portfolio.com So how was your weekend? I don’t know about you, but I woke up Monday morning poorer by $2.3 billion.
Read More »The Boston Business Journal reports that CIT Group Inc. filed for bankruptcy protection Sunday after its board of directors approved of a plan to reorganize the giant small business lender. The plan has also been approved by CIT’s creditors. “The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy,” Chief Executive Jeffrey Peek said in a statement.
Read More »Stephen Bernard reports at Kansas City.com that activist investor Carl Icahn is offering struggling lender CIT Group a $6 billion lifeline. In a letter Monday to CIT’s board of directors, Icahn said he would give the company the loan to replace a debt restructuring plan CIT has asked bondholders to approve.
Read More »The Associated Press reports that CIT Group Inc., a major lender to small and midsize businesses that struggled under mounting losses and tight credit availability, amended its debt restructuring offer to enlist more bondholder support for the plan. The troubled New York-based lender had launched the debt restructuring effort Oct. 1 with the hope that it will trim at least $5.7 billion from its near-term debt. It is also asking bondholders to approve a prepackaged reorganization plan in case it is forced to file for Chapter 11 bankruptcy protection.
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