Mortgage and Business News » Cit Group

CIT Group: Leaner and Stronger After Bankruptcy

Tony Lambert — Fri, 06 Nov 2009 17:41:40 +0000

It does seem strange just a couple of years ago, just the mention of multibillion-dollar company going bankrupt would have sent the stock market into a panic. Now we just nod our heads and wonder who is next.

As we mentioned in a recent post CIT Group became one of the largest corporate bankruptcies in history. The $71 billion bank holding company has nearly $65 billion in liabilities, and the bankruptcy is being used as a chance to refinance debt obligations and come out leaner and stronger.

However CIT will not be taking on new customers for the foreseeable future. That means small businesses have lost a major financing resource, But that doesn’t mean small businesses that want to expand have no other options. Lending has increased dramatically in the second half of the year. Since the economic stimulus package went into effect in February, the average number of loans approved each week has grown by more than 50%. according to the Small Business Administration.

So if you have a vision, you can still get funding, as long as you’re prepared to work hard for it and tick all the boxes. To read more on this story go to thestreet.com.

Cit Group vs. Citigroup: The difference and bankruptcy

Tony Lambert — Mon, 02 Nov 2009 15:55:58 +0000

As you may have read in a recent post published CIT group have listed $71 billion in assets and $64.9 billion in liabilities in a Chapter 11 petition yesterday at a U.S. Bankruptcy Court in Manhattan. This group is not to be confused with Citigroup.

CIT group are a commercial lender that have lent to over one Million businesses. CIT has provided lending, advisory, and leasing services to small and middle market businesses guided by unparalleled industry expertise and focus. The company received $2.3 billion from the Treasury on December 31st last year to stave of bankrupcy. To read more on CIT group go to cit.com.

Citigroup was formed from one of the world’s largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group in 1998 It is a primary dealer in US Treasury securities. Citigroup Inc. has the world’s largest financial services network, spanning 140 countries. Even this group needed a bail out by the government in November 2008.To read more about Citigroup go to wikipedia.org. why not give your answer to answers.yahoo.com.

Cit Group Bankruptcy: Chapter 11 petition

Tony Lambert — Mon, 02 Nov 2009 14:39:07 +0000

Over 100 years old CIT group Inc, the commercial lender saw its funding dry up in the credit crunch, filed for bankruptcy in an effort to cut $10 billion in debt. CIT listed $71 billion in assets and $64.9 billion in liabilities in a Chapter 11 petition yesterday at a U.S. Bankruptcy Court in Manhattan.

The government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT according to the Treasury Department. CIT funds over one million businesses such as Eddie Bauer Holdings Inc, said it plans to exit court protection quickly due to support from bondholders. Jean Everett, from Hiscock & Barclay LLP said “Short term, it’s going to cause some difficulties for startups and smaller borrowers.”

The lender, reported $3 billion of losses in the past eight quarters, received $2.3 billion from the Treasury on December 31st last year. The company tried to stave off bankruptcy with a $3 billion rescue loan from bondholders in July to see it through a cash crunch, arranged by Barclays Plc, included investors led by Newport Beach, California-based Pacific Investment Management Co. and Centerbridge Partners LP in New York.

To read more on this story go to bloomberg.com.