CIT Bond Advisers Back Prepackaged Bankruptcy

Law360, New York (July 23, 2009, 6:56 PM EDT) -- Just after CIT Group Inc. admitted that it might be forced to resort to seeking out bankruptcy protection, advisers to the bondholders that infused the struggling lender with a $3 billion rescue loan have reportedly made a bid to sway the company into a prepackaged bankruptcy if it comes up short in attracting creditors.

The troubled financier said in a U.S. Securities and Exchange Commission filing on Tuesday that if it didn’t receive enough cash tender for $1 billion of outstanding floating rate senior notes due...
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