CIT Must Face Tyco's $190M Tax Claim, 2nd Circ. Says

Law360, New York (September 6, 2012, 4:46 PM EDT) -- The Second Circuit on Thursday refused to erase Tyco International Ltd.'s $190 million claim that its former subsidiary CIT Group Inc. had wrongly scrapped a tax benefits agreement after filing for bankruptcy.

A three-judge panel affirmed a December 2011 bankruptcy court decision that classified the claim as a creditor claim, rather than an inferior shareholder claim. CIT shareholders were wiped out by the bank holding company's 2009 bankruptcy filing.

The panel called the bankruptcy court decision “thoughtful and comprehensive.”

“We have carefully reviewed the record and...
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