CIT on Sunday night clinched a two-year, $3bn rescue financing with its creditors that will enable the troubled US finance group to avoid bankruptcy. After round-the-clock talks that included the possibility of a Chapter 11 filing, CIT and its main creditors sealed an agreement on the financial lifeline. A group of at least six creditors who are planning to provide the capital comprise a mix of traditional money management firms and hedge funds, who bought into the debt at much less than 100 cents on the dollar. They include Baupost, a Boston-based hedge fund, CapRe, hedge fund and private equity firm Centerbridge Partners, Oaktree Capital, Pimco and Silverpoint Partners. Barclays is expected to act as agent on the financing package.

This entry was posted by Paul Murphy on Monday, July 20th, 2009 at 5:45 and is filed under Capital markets. Tagged with barclays, baupost, CIT, JP morgan, morgan stanley, oaktree capital, pimco, silverpoint. Edit this entry.