CIT Gives Bondholders Two Choices: Exchange Offer, or Prepackaged Bankruptcy Friday, October 2, 11:16 AM ET
Late Thursday night CIT Group (NYSE:CIT) announced its restructuring plan. Bondholders are being asked to exchange existing debt securities for either preferred stock, new notes, or a combination of both. But CIT is also soliciting bondholder approval for a prepackaged Chapter 11 bankruptcy filing, should the exchange offers fail. The company said in the event of a bankruptcy filing, its CIT Bank unit would not itself file for bankruptcy, letting business continue with minimal disruptions.
In either scenario, CIT said its franchise would emerge with a well-funded bank holding company and a strong capital position. Shares of CIT Group were trading higher by more than 5 and a half percent Friday morning.
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