from the New York Times:
CIT Seen Filing for Bankruptcy in Coming DaysOctober 30, 2009, 6:01 am
Update | 7:20 a.m.
The CIT Group is likely to file for bankruptcy in the coming days, analysts and experts told Reuters.
Separately, the lender said Thursday that it has reached an agreement to reduce the amount of a $3 billion loan from Goldman Sachs made last year to about $2.13 billion and got a promise from Goldman not terminate the financing should CIT file for bankruptcy.
In return, CIT will pay Goldman $285 million, a proportional amount of the $1 billion termination fee due to Goldman, and post an additional $250 million in collateral.
CIT, a lender to small and medium-sized businesses, is trying to restructure its debt, and is offering investors two options. One path would be getting its unsecured debt holders — who hold a total of about $30 billion — to voluntarily exchange their bonds for new securities and equity. That path would avoid a bankruptcy filing.
The other and more likely option would be approving a reorganization plan before the company files for bankruptcy. CIT had about $70 billion of assets and $65 billion of total debt in the middle of this year, according to the latest publicly available figures. ........(more)
The complete piece is at:
http://dealbook.blogs.nytimes.com/2009/10/30/cit-seen-filing-for-bankruptcy-in-coming-days/