The CIT Group, which is the middle-market lender that has struggled under the weight of the financial crisis, has unveiled a management-sponsored restructuring plan and has strongly urged investors to get behind the plan. In fact, CIT has told its investors that passing the plan is the only way to avoid losses of 63 to 94 cents for every $1 invested.
According to its restructuring presentation, CIT will have to resort to bankruptcy unless this specific plan is not passed, a situation that would involve great losses for the CIT investor and sacrifice control of the changes. The plan would involve …read more

Struggling lender CIT Group made headlines when it announced a little more than a month ago that it would extend the contract of CEO Jeffrey Peek until September 2, 2010. Today, the company, a commercial lender that gives funding to around 1 million small and medium-sized businesses, announced that Peek will resign from his post as chief executive at the end of the year.
The news comes two weeks after the company announced a massive restructuring plan that will most likely involve either a pre-packaged bankruptcy or an enormous debt swap effort in order to get the lender back on its feet …read more

CIT Group Inc., on the verge of bankruptcy, has been feverishly negotiating a bout of rescue financing with bondholders in order to avoid having to dip into bankruptcy. Fortunately for CIT, the business lender has secured $3 billion from its bondholders in rescue financing, which does not completely remove the threat of bankruptcy but goes a long way toward preventing it.
 
According to inside sources, the bondholder group is expected to provide the money over a 2 ½ year period. CIT’s board had a meeting today to discuss the terms of the loan, and if everything goes well in the meeting, …read more