(Filed Under Financial and General Interest News). After reaching its restructuring deadline yesterday, CIT Group Inc. announced today that it has commenced a restructuring of its capital structure. Jeffrey M. Peek, chairman and CEO of the company, assured investors and customers that they have the funds to continue to serve small and middle-market clients throughout the process.
Under the plan, CIT Group Inc. and CIT Group Funding Company of Delaware LLC (Delaware Funding) are launching exchange offers for certain unsecured notes. The company said that if it does not achieve the objectives of the exchange offers, it might voluntarily file for bankruptcy.
According to CIT Group Inc., successful completion of the exchange offers will generate “significant” capital and provide multi-year liquidity by materially reducing the company’s outstanding debt. The exchange offers are set to expire on October 29th.
The company is also soliciting bondholders and other holders of CIT debt to approve a plan of reorganization so that it has the option of proceeding with voluntary bankruptcy filing. “The company believes that such a bankruptcy process could be resolved expeditiously with minimal disruption to its business. In this process, CIT Bank and CIT’s operating entities would not file for bankruptcy, which will allow the company to continue to service its customers.”
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