CIT Board of Directors Approves Proceeding with Prepa
Plan of Reorganization with Overwhelming Support of
Nearly 90% in Favor of Plan; Emergence Sought by Year-End
Operating Entities Remain Unaffected and Highly Liquid
Continue Lending to Small and Middle Market Businesses
November 01, 2009 03:47 PM Eastern Time
NEW YORK--(EON: Enhanced Online News)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses
market companies, today announced that, with the overwhelming support of its debtholders, the Board of Directors voted to proce
prepackaged plan of reorganization for CIT Group Inc. and a subsidiary that will restructure the Company’s debt and streamline its
Importantly, none of CIT’s operating subsidiaries, including CIT Bank, a Utah state bank, will be included in the filings. As a result,
entities are expected to continue normal operations during the pendency of the cases.
All classes voted to accept the prepackaged plan and all were substantially in excess of the required thresholds for a successful vote
85% of the Company’s eligible debt participated in the solicitation, and nearly 90% of those participating supported the prepackage
Similarly, approximately 90% of the number of debtholders voting, both large and small, cast affirmative votes for the prepackaged
conditions for consummating the exchange offers were not met.
Accordingly, CIT’s Board of Directors approved the Company to proceed with the voluntary filings for CIT Group Inc. and CIT G
Company of Delaware LLC with the U.S. Bankruptcy Court for the Southern District of New York (“the Court”).
Due to the overwhelming and broad support from its debtholders, the Company is asking the Court for a quick confirmation of the
prepackaged plan. Under the plan, CIT expects to reduce total debt by approximately $10 billion, significantly reduce its liquidity n
three years, enhance its capital ratios and accelerate its return to profitability.
“The decision to proceed with our pl