10/01/2009 (2:48 pm)
CIT eyes debt exchange or prepack bankruptcy: sources
CIT Group Inc is planning to offer its unsecured debt holders two options: either to exchange their debt voluntarily, or agree to a prepackaged bankruptcy, people close to the matter said on Wednesday.
The debt exchange would allow bondholders to swap their securities for new debt, or equity. CIT has about $32 billion of unsecured debt on its balance sheet, and is hoping to reduce its indebtedness and to put off repaying maturing obligations.
Few financial companies have survived bankruptcy, but CIT believes its customers will continue to borrow from it even if it is reorganizing in bankruptcy court, the sources said. The sources declined to be identified because the plans are not yet public.
(Reporting by Dan Wilchins and Paritosh Bansal, editing by Leslie Gevirtz)
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.