| November 1, 2009 Lender CIT files for Chapter 11
|
WASHINGTON (AP) - Lender CIT Group has filed for Chapter 11
bankruptcy protection, a potential blow to the thousands of small
and mid-sized businesses that rely on the company for loans to keep
their operations afloat.
CIT made its filing in New York bankruptcy court Sunday, after a
debt-exchange offer to bondholders failed. CIT says the majority of
its bondholders have approved a prepackaged reorganization plan
which will reduce total debt by $10 billion while allowing the
company to continue to do business.
CIT's move will wipe out current holders of its common and
preferred stock, likely meaning the U.S. government will lose the
$2.3 billion it sunk into CIT last year to prop up the ailing
company.
The Chapter 11 filing is one of the biggest in U.S. corporate
history.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Related Stories:
[1 year ago]
[43 weeks ago]
[41 weeks ago]
[35 weeks ago]
Play video
