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’More bonus neurosis: Thain and how times have changed
He has been keeping a low profile since his ignominious exit from Merrill Lynch in early 2009. But who can forget John Thain, former Merrill Lynch CEO, of lavish-office-refurbishment fame.
Thain on Sunday was named chief executive of the CIT Group,
CIT could exit bankruptcy ‘in days’
US small business lender CIT Group on Tuesday won approval from a New York bankruptcy judge for its prepackaged reorganisation plan, paving the way for it to exit bankruptcy within days, reports Reuters.
CIT faces hurdles to prove viability
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.
CIT files for bankruptcy
CIT Group, the troubled US commercial lender, on Sunday filed for bankruptcy after attempts at a restructuring or bail-out failed. In a statement, CIT said it had asked the bankruptcy court to quickly confirm its prepackaged bankruptcy plan,
CIT readies a pre-packaged Chaper 11, seeks to re-emerge within 2 months
Not that this was remotely unexpected, but commercial lender CIT on Sunday issued the following statement (emphasis FT Alphaville’s):
CIT Board of Directors Approves Proceeding with Prepackaged Plan of Reorganization with Overwhelming Support of Debtholders
Nearly 90% in Favor of Plan;
CIT, or the world’s least unexpected bankruptcy filing (UPDATED)
Alright, there are more than a few contenders to the title of the world’s least unexpected bankruptcy filing (not least Woolworths, or Thornburg Mortgage), but CIT has to be up there.
On Friday, CNBC reported the deeply troubled consumer lender would file for Chapter 11 bankruptcy protection on Sunday night.
CIT spurns Icahn, accepts loan
CIT Group, the stricken US commercial lender, on Wednesday said it had received a $4.5bn loan from a “diverse group” of lenders and had turned down a competing offer from Carl Icahn, the activist investor.
CIT, Goldman in loan pact
CIT, the troubled US commercial lender, reached a tentative agreement with Goldman Sachs over a disputed payment on a $3bn loan, reports Dow Jones. An agreement over the $1bn “make whole” payment could be made final within Friday.
Icahn offers to underwrite CIT loan
Carl Icahn, the activist investor, on Monday offered to underwrite a $6bn loan for CIT Group, the troubled US lender, as he accused CIT of overpaying for a new loan from existing lenders to win support for its reorganisation plan.
CIT amends restructuring plan
CIT Group has sweetened the terms of a restructuring plan after struggling to win bondholder support for concessions to reduce CIT’s $30bn debt load. The amended terms, announced late Friday, were agreed in talks between the troubled US commercial lender and its bondholders who earlier this year provided CIT with $3bn of rescue financing.
Peek to quit CIT
Jeffrey Peek submitted his resignation on Tuesday as chief executive of CIT Group as the troubled US commercial lender struggled to gain support from bondholders for its debt exchange plan. If CIT fails to win support for the plan – aimed at eliminating at least $5.7bn of its $30bn debt – it will automatically switch to a prepackaged chapter 11 bankruptcy filing.
CIT debt swap struggles, bankruptcy looms
CIT, the troubled lender to small and medium-sized businesses, is seeing little interest from bondholders in a debt exchange offer aimed at repairing its fragile balance sheet, Reuters said, citing sources familiar with the matter.
Goldman to gain $1bn if CIT fails
Goldman Sachs stands to receive $1bn – and US taxpayers lose $2.3bn – if the embattled US commercial lender CIT files for Chapter 11 bankruptcy protection. The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT in June 2008,
Weekend catch-up
In case you missed these stories:
- Blackstone nears $3bn theme parks buy
US buyout group Blackstone is expected to buy 10 theme parks from brewing group AB InBev, in a $3bn deal that could be sealed on Monday.
CIT starts debt exchange offer
CIT Group’s board approved a restructuring plan on Thursday, clearing the way for the troubled US commercial lender to launch a large debt exchange offer or file for prepackaged bankruptcy, reports Reuters.
CDS report: Mixed US data weigh on market
Gavan Nolan of Markit wrote this CDS report
The European credit markets took a turn for the worse this afternoon following another session of mixed US economic data. The Markit iTraxx Europe was trading around 88bp (3.5bp,
CIT in last-ditch rescue bid
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.
CIT posts loss, completes debt exchange
CIT Group, the troubled US lender, on Monday reported a Q2 loss and said it continues to pursue a turnaround plan outside of bankruptcy court, reports Reuters. CIT recorded a Q2 net loss of $1.68bn,down from $2.08bn a year earlier.
CIT gives NY Fed oversight powers
CIT, the troubled US lender, on Thursday agreed with the Federal Reserve Bank of New York, its primary regulator, to give the Fed detailed oversight of its restructuring plans and veto power over dividend payments and other shareholder-friendly activity.
Financials fall on toxic assets warning
Financial stocks led US equities to their worst day in more than a month on Tuesday after the Congressional Oversight Panel, which runs the US government’s TARP scheme, warned that the Treasury had not done enough to relieve banks of toxic assets.
CIT misses quarterly results deadline
CIT, the troubled US small-business lender, on Tuesday delayed filing its Q2 results with the SEC, saying its restructuring efforts meant it was unable to meet the deadline without “unreasonable effort or expense”.
The CIT deathwatch continues
Increasingly, the question seems to be when – rather than if – troubled commercial lender CIT will file for bankruptcy.
The lender has faced a series of end-of-the-world deadlines and won an equal number of eleventh hour reprieves,
CDS report: European carmakers outperform after BMW results
This CDS report was written by Markit’s Gavan Nolan
Investment grade indices widened for the third consecutive day as investors continued to take profits from the recent rally. The Markit iTraxx Europe index closed just under 91bp,
CIT sweetens offer on $1bn debt
CIT Group, the US small-business lender, on Monday sweetened its tender offer for $1bn of debt due this month after failing to win bondholders over with its original price. CIT, struggling to meet short-term liquidity requirements,
Advisers to CIT’s bondholders said to push for bankruptcy
Advisers to the bondholders that gave troubled commercial lender CIT a $3bn lifeline are recommending the company be restructured through a bankruptcy after a debt tender next month, Bloomberg said, citing a person familiar with the matter.
CIT saved, but troubles still brewing in the CP market
David Rosenberg of GluskinSheff draws attention to the continuing contraction of the US commercial paper market, one of the main portals of funding for medium-sized enterprises in the country. In his latest report he writes (our emphasis):
CIT board approves $3bn rescue package
CIT’s board on Monday approved a two-year, $3bn rescue package with a group of lenders enabling the troubled US finance group to avoid a bankruptcy filing, after round-the-clock weekend talks. The company and its creditors had to move quickly to arrest a slide into bankruptcy and prevent its best customers from defecting for fear the lender could no longer support them.