CIT Group To Exit Ch. 11 Minus $11B In Debt

Law360, New York (December 8, 2009, 12:47 PM EST) -- Business lender CIT Group Inc. won approval Tuesday to leave Chapter 11, with a bankruptcy judge signing off on a reorganization plan that erases $11 billion in debt and leaves shareholders, including the federal government, high and dry in the U.S.' fifth-largest bankruptcy case to date.

Judge Allan L. Gropper turned away shareholder objections in the U.S. Bankruptcy Court for the Southern District of New York in a 70-minute hearing that saw the greatest recovery for big secured lenders, who are to get 70 cents on...
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