CIT Aims To Cut $5.7B In Debt, But Ch. 11 Still Looms

By Evan Weinberger

Law360, New York (October 02, 2009, 12:57 PM ET) -- Troubled business lender CIT Group Inc. on Friday announced a debt exchange plan aimed at trimming $5.7 billion from its balance sheet, but said that it would seek approval from bondholders for a prepackaged Chapter 11 if the plan failed.

CIT's announcement came less than two months after the company announced the completion of a tender offer for $1 billion of floating rate senior secured notes that was intended to keep it from filing for bankruptcy.

The plan announced Friday won approval from CIT's board of...
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