CIT Group files for chapter 11 bankruptcy
Well it officially happened on Sunday – CIT Group filed for chapter 11 in New York’s bankruptcy court in an apparent attempt to restructure it’s debt. CIT was pretty much forced into proceeding with the filing after a debt-exchange offer to bondholders failed. Along with the Leham Brothers, Washington Mutual and GM Motors this is one of the largest bankruptcy filings in US history. According to a recent Dallas News article, CIT’s bankruptcy filing shows $71 billion in finance and leasing assets against total debt of $64.9 billion.
However, while the image (above) may suggest otherwise, CIT group isn’t quite dead yet. A recent Yahoo Finance article states that the decision to proceed with the plan of reorganization will allow CIT to continue to provide funding to their small business and middle market customers, “two sectors that remain vitally important to the U.S. economy,”