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Cit Group Says Existing Liquidity Not Enough To Make August Debt Payment

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July 21 (Bloomberg) -- CIT Group Inc.’s $3 billion financing pledge from bondholders may fail to shield the commercial lender from about $10 billion of debt maturing through next year, mounting loan defaults and a shrinking market share.

“The company has indicated they have significant upcoming maturities,†said Renee Dailey, a partner in the financial restructuring group at law firm Bracewell & Giuliani LLP in Hartford, Connecticut. “It’s unlikely that $3 billion will solve their problems.â€

CIT announced an agreement with bondholders to provide the emergency financing late yesterday, keeping the 101-year-old commercial finance company out of bankruptcy. The first $2 billion of the 2 1/2-year loan is available immediately, with the rest expected in the next 10 days, New York-based CIT said. The company said the deal is the first step in a bigger restructuring and it’s also asking debt holders to agree to reduce their claims. Bankruptcy is possible unless the tender offer succeeds, the company said in a regulatory filing today.

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I guess they will be saved, as Goldman Sachs have exposure.

Unless of course Goldman regards them as competition, in which case they are doomed! :lol:

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