CIT Group Files Bankruptcy Plan
November 2, 2009 at 4:30 AM (PT)
Lender CIT GROUP INC., which has backed several major radio deals, has filed for a prepackaged Chapter 11 bankruptcy. The company listed $71 billion worth of assets and $64.9 billion in liabilities; the bankruptcy would be the fifth largest in American history by assets.
CIT has been given $1 billion for operations through DECEMBER 31st by investor CARL ICAHN and added $4.5 billion to its existing $3 billion credit facility on OCTOBER 28th. A plan to exchange new securities and equity for debt was rejected by debtholders last week, as was a competing plan offered by ICAHN.
The prepackaged plan will likely include new noted for debtholders at 70 cents on the dollar, plus new common stock. The company received $2.3 billion in bailout money last DECEMBER 31st.