CIT Group, the US commercial lender that on Sunday filed for bankruptcy under a pre-packaged plan, faces obstacles to emerge from bankruptcy court with a viable business model. CIT’s bankruptcy plan is designed to cut $10bn of unsecured debt from its balance sheet by year-end. The bankruptcy court must sign off on the plan but analysts question whether CIT can restructure to focus on its Utah bank – which has not filed as part of the bankruptcy – to fund new business lending.

This entry was posted by Gwen Robinson on Tuesday, November 3rd, 2009 at 4:55 and is filed under Capital markets. Tagged with CIT. Edit this entry.