CIT Sets the Record Straight
October 27, 2009 05:32 PM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses
market companies, today corrected important inaccuracies contained in an open letter from Carl Icahn to smaller CIT bondholders.
seeking to convince smaller bondholders to vote against the Company's proposed restructuring plan now in exchange for his ill-defin
some of Mr. Icahn’s unidentified "affiliated entities" will eventually deliver on that vague promise.
Over the last several months, CIT has worked together with a diverse group of bondholders in developing a comprehensive restruct
position CIT for future success. The successful completion of either the exchange offers or plan of reorganization will generate signifi
liquidity. CIT and many of its bondholders believe this plan maximizes franchise value. Importantly, under CIT’s plan all bondholder
class, large and small, are treated equally.
Mr. Icahn has also misrepresented the fundamental economics of the Company’s restructuring plan. As described in CIT’s plan of r
senior unsecured bondholders would receive consideration of $700 in new secured bonds for every $1,000 of existing bonds, in ad
consideration which would allow for participation in future value created by the Company. In addition, under the Company's plan, b
receive substantially all of the equity of CIT.
CIT also clarified several facts that were misrepresented in Mr. Icahn's letter related to its corporate governance and use of cash, b
detailed in the Amended Offering Memorandum. First, CIT's Board of Directors will be comprised of a majority of new independe
significant number of whom will be proposed by the Company's bondholders. In addition, CIT Chairman and Chief Executive Offic
has announced his resignation effective December 31st.
Second, with regard to restrictions on the use of cash, contrary to Mr. Icahn's assertions, CIT has incorporated into its plan a cash