Breaking: CIT Is Already Working On Bankruptcy Plan
By Daniel at 1 October, 2009, 3:27 pm
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” CIT Group Inc. upped the ante with its creditors by drawing up a prepackaged bankruptcy plan, two people familiar with the matter said Wednesday.
The move pressures its bondholders to participate in a proposed debt restructuring, or take their chances in bankruptcy court.
The details of the prepackaged bankruptcy plan will be shared with investors along with the debt restructuring plan, said the people familiar with the matter. They also have the option to vote on the prepackaged bankruptcy.
The lender previously warned investors that a bankruptcy filing as a means of restructuring the company is one option for CIT. “A threat isn’t a threat unless you’re willing to follow through,” said one of the people.”
http://online.wsj.com/article/SB125435689717554575.html?mod=dist_smartbrief
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