It’s chaper 11. The taxpayers lose their investment, but CIT just refuses to go away.
By Daniel at 1 November, 2009, 10:52 pm
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CNN:
CIT: One cloud hanging over the markets to start the week is the bankruptcy filing of CIT Group (CIT, Fortune 500), one of the leading providers of funding for small and medium-sized business. The company said it has already worked out a reorganization plan with bondholders that it expects to speed the Chapter 11 process and reduce CIT’s debt by $10 billion.
But the filing means that common and preferred shareholders, which include the federal government to the tune of $2.3 billion in Troubled Asset Relief Program funds, will be wiped out.
P.S
CIT Bankruptcy to leave small business floundering
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0140708520091101?pageNumber=1&virtualBrandChannel=10522
- GonzoOne
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