Without Cash, CIT Teeters Toward Bankruptcy

Law360, New York (July 16, 2009, 4:10 PM EDT) -- With the U.S. government unwilling to give CIT Group another bailout, the small- and midsize-business lender is reportedly expected to file for bankruptcy, short of a last-minute cash infusion from existing debt holders.

After discussions with the federal government petered out Wednesday without the prospect of additional funding, CIT raced to try and land $2 billion in rescue financing from its debt holders, the Wall Street Journal reported, and will likely be forced to file for bankruptcy protection if the new cash does not materialize....
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