$3B Cash Injection May Not Keep CIT From Falling

Law360, New York (July 21, 2009, 7:55 PM EDT) -- Even with the emergency $3 billion cash injection CIT Group has received from bondholders, the company may still be forced to seek out bankruptcy protection, CIT said in a filing with the U.S. Securities and Exchange Commission on Tuesday.

The troubled financier says that if it doesn’t receive enough cash tender for its outstanding floating rate senior notes due Aug. 17, 2009, it may have to resort to bankruptcy.

CIT said the hypothetical bankruptcy could include approval for the sale of most or substantially all of...
To view the full article, register now.