Deckard Posted July 21, 2009 Share Posted July 21, 2009 http://www.bloomberg.com/apps/news?pid=206...id=aAn5QqC1kIE0 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.†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. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted July 21, 2009 Share Posted July 21, 2009 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! Quote Link to comment Share on other sites More sharing options...
MOP Posted July 21, 2009 Share Posted July 21, 2009 Probably going down. Quote Link to comment Share on other sites More sharing options...
Injin Posted July 21, 2009 Share Posted July 21, 2009 Probably going down. Pump and dump. Squidy needs his blood. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 21, 2009 Share Posted July 21, 2009 I wonder who'll be feeding on the carcass!!! Quote Link to comment Share on other sites More sharing options...
Deckard Posted July 21, 2009 Author Share Posted July 21, 2009 More details just out: CIT Expects Loss of $1.5 Billion, Bankruptcy If Debt Swap Fails http://www.bloomberg.com/apps/news?pid=206...id=aP5XYiownx2o Quote Link to comment Share on other sites More sharing options...
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