Cit Bankruptcy Filing Update: Exit Plan

CIT Group Inc the Commercial lender, based in New York, filed for bankruptcy protection on Nov. 1 after it had negotiated an exit plan with lenders to try to ensure a speedy exit as we recently reported.

CIT Group Inc., said on Wednesday it would ask a court to approve its prepackaged plan to exit Chapter 11 at a hearing on Dec. 8. Cit has been hanging in the balance of collapse have already reached agreements with creditors to reduce its debt by about $10 billion. Shareholders would be wiped out under the existing reorganization plan.

CIT is one of the nation’s biggest lenders; it funds over one million businesses to small and midsize, to a large array of businesses including retailers, and energy companies.
There is little hope the government will recover the $2.3 billion CIT took last fall as part of a rescue of other banks and lenders.

CIT Group must not be confused with Citigroup as we explained in a recent post. To read more on this story go to forbes.com.