The fate of  CIT Group was hanging in balance on Tuesday as the US commercial lender readied a plan to hand control to its bondholders, reports the WSJ. CIT is preparing a sweeping exchange offer to eliminate 30% to 40% of its $30bn-plus debt outstanding. The plan would offer bondholders new debt secured by CIT assets and nearly all the equity in a restructured company. If not enough bondholders agree, adds Reuters, CIT could seek to restructure in bankruptcy court in one of America’s largest Chapter 11 bankruptcy-court filings.

This entry was posted by Gwen Robinson on Wednesday, September 30th, 2009 at 4:57 and is filed under Capital markets. Tagged with CIT. Edit this entry.