CIT: Bankruptcy still possible
July 22, 2009,
New York— CIT Group warned in a federal filing that it may still need to file for bankruptcy protection if its cash tender offer for debt maturing in August fails.
The lender, which announced Monday that it had secured $3 billion in emergency financing from a group of its largest bondholders, has $1 billion in debt due next month. Under a recapitalization plan, it is offering debt holders $825 for every $1,000 in notes if they are tendered by July 31.
That relief could include seeking court approval to sell its assets or pursuing a plan of reorganization, among other steps, the company said.
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