CIT Group files for prepackaged bankruptcy
November 3rd, 2009
CIT Group Inc filed for bankruptcy protection on Sunday, and its creditors have already approved the commercial lender’s reorganization plan.
CIT’s operating subsidiaries, including CIT Bank, are not included in the bankruptcy filing, and expect to continue operating.
CIT, which filed for bankruptcy protection in the Southern District of New York, plans to reduce its total debt by about $10 billion payday advance loans.
The company suffered as the global credit crisis left it unable to fund itself, and the recession left it with too many bad loans.
(Reporting by Dan Wilchins; Editing Bernard Orr)
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