CIT Group again amends debt exchange offer
October 26, 2009-- Home Textiles Today,
New York — Troubled lender CIT Group again amended its offer last week for a debt exchange to gain support for its restructuring plan in an effort to fend off bankruptcy.
The company, a major factoring lender to the retail and home furnishings industries, increased the interest rate payable on its Series B notes from 9% to 10.25% and extended the date for acceptance from Oct. 29 to Nov. 5.
Two weeks ago, CIT had upped its offer on Series B notes to 9% from 7% to entice more support from holders of its bonds.
Also last week, investor Carl Icahn, who has said he is the largest holder of CIT debt, offered to loan CIT Group $6 billion in place of the debt restructuring plan proposed by the lender.
Icahn Enterprises, one of Icahn’s ventures, owns home textiles supplier and manufacturer West Point Home.
Related Content By Author
Industry Related Content
Countdown to Heimtextil 2015 - Part 3