Another leading American lender tries to avoid bankruptcy? Can they make it in an era where filing bankruptcy is the norm.
Here is the full story.
CIT Says Bondholders Won’t Push for Bankruptcy
August 11, 2009, 8:13 AM
The CIT Group, a troubled lender to small and midsize businesses, said on Tuesday that its bondholders don’t plan to push for a bankruptcy filing, but also warned that a bankruptcy was still possible.
“The company and a steering committee of the bondholder lending group do not intend for the company to seek relief under the U.S. Bankruptcy Code, but rather will pursue restructuring efforts as part of the comprehensive restructuring plan to enhance the company’s liquidity and capital position,” the lender said on Tuesday in a regulatory filing.
CIT, which turned to bondholders for $3 billion in rescue financing after failing to get a second government bailout, said last month it does not have the money to repay securities maturing on Aug. 17 and may file for bankruptcy if it fails to get 90 percent participation in its tender offer.
“If the pending tender offer is not successfully completed, and the company is unable to obtain alternative financing, an event of default under the provisions of the credit facility would result and the company could seek relief under the U.S. Bankruptcy Code,” CIT, which is based in New York, said in the filing on Tuesday.
—–
Gonzalez & Waddington are Augusta GA bankruptcy lawyers and GA bankruptcy attorneys.
Comments on this entry are closed.