Looks like recovery money for CIT goes down tubes with AIG whose ousted CIC places 4.3B in an offshore undetectable retirement acct in 2005. Left Rights joint venturist law partners in Govt allow AIG former CIC of AIG to start up with 4.3B in REITS of RED LINED America in the new Bermuda GITMO island under name CV STarr Inc a none FOIA island paradise for black muslim Chinese Gitmos with businesses in Bermuda--
hmm
go Govt LLP czars n Senate and Congress---Preferred bailout money stocks to disappear in Bankruptcy?
lol
teel on ma n pa no nury wrights for alleged Deadbeat domestic Terrorist males and their parents w/o kids after State Mother AHA Inc and CDF Inc retrains em sinc 1964 to pray to Allah n not serve in any MTA Firedept/Black Watch Crown Police precincts with video judges and 100K Clinton hate crimes cops to seperate any black or white chrisitan muslim male from his home w/o trial or jury-- carrying american Flags or allowing White African Farmers in Zimabawee, South Africa or Liberia(a US Appendage w/o GITMOS sent to american prsons to retrain in Liberia --where according to Balck Caucsus Constitution formed by ACS in America none but dispersed African of Color can get citizenship--
bye bye black birds in American Govt-EDU and Courts of GITMOS fed Pens to retrain American Deadbeats owing Natl Debt Inerest dailies --
Wonder how UAW's BNH-Mellon holding company is doing with DOW strades of DTC as its settlement bank? Got certificates for ya stock trades?
snookered snooks lefts and rights gave America away et al--
crumbling from within with left-rights social capitalists Not for profits merged into Hate Crimes protected Cells and military of AmeriCorps alan Solomont global nursing homes off govt HC funds and in ya face volunteers in media and SAG jobs
hmm
<link>
hmm
<link>
RED Lined African American zones to RED Lined Americans a Millenium Villages INC ING merger operation to put USA on EUROS as a bailout of its debtor classes of Deadbeat Americans who invested in Spiked R.E Evaluations RTC Part II HC prorgrams of Community Organizations International in ya face global election fixes in Liberia an of color only citizenry allowed USA Appendage formed by AC Madison and Monroe and disolved in 1984 when Kennedy's Service Act of CRA took over--
hmm
Update | 3:46 p.m. Three months ago, the CIT Group barely averted what it considered to be a ruinous bankruptcy filing that would likely have put the 101-year-old lender out of business.
On Sunday afternoon, the company filed for Chapter 11 — but under a so-called prepackaged bankruptcy plan that will enable it to emerge from court protection by the end of the year, under the control of its debtholders. (Read the filing after the jump.)
The filing, made in a Manhattan federal court, will still mean much pain for many parties, beginning with taxpayers. CIT received $2.3 billion in government aid last year, a bailout that came in the form of preferred stock. That will almost certainly be wiped out in the bankruptcy process, the first realized loss in the government’s rescue of the financial system.
While several firms that have received bailout money, including Goldman Sachs and Morgan Stanley, have repaid the government, others — including the American International Group, General Motors and Chrysler — are expected to lead to losses.
CIT’s filing will test whether a financial company can survive the Chapter 11 process. Bankruptcy has long been considered a death knell for lenders, whose very existence depends on the confidence of its creditors and customers. The company’s struggles have been watched with interest and trepidation by analysts and the thousands of small and mid-sized businesses that borrow from CIT.
CIT was the nation’s largest provide of what is known as factoring, a type of lending used heavily by retailers. The company has spent months trying to reassure its clients that it will remain open for business as stores ramp up for the holiday season. Its travails may be seized upon by its rivals in the sector, including General Electric’s GE Capital unit.
Sunday’s filing caps months of efforts by CIT to stay alive. After being denied another bailout by the federal government, the company bargained with its creditors over a restructuring plan that would keep it operating and cut $10 billion in unsecured debt.
“The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy,” Jeffrey M. Peek, CIT’s outgoing chairman and chief executive, said in a statement. “This market-based solution allows CIT to enter into the reorganization process well-prepared and positioned for a swift emergence.”
While CIT had hoped to stay out of bankruptcy court through a bond exchange offer, that plan failed to win enough support from bondholders, the company said in a statement.
With $71 billion in assets and nearly $65 billion in liabilities, CIT is among the largest corporate bankruptcies on record, though it is dwarfed by the likes of Lehman Brothers and Washington Mutual. The company said in its bankruptcy petition that it had $800 million in bonds maturing from Sunday through Tuesday.
CIT said that only its holding company will file for bankruptcy, and that most of its important operating subsidiaries, including its Utah bank, will continue to operate normally.
Mr. Peek, the architect of its push to grow beyond its sleepy industrial-lending roots into a major new financial player, will step down by the end of the year. People briefed on the matter said the search for his replacement is ongoing and ultimately remains up to the company’s new board of directors.
Bondholders will receive about 70 cents on the dollar through the prepackaged bankruptcy, though the company warned that investors could receive as little as 6 cents on the dollar in the alternative, a free-fall bankruptcy that lacked a pre-approved reorganization plan.
Last month, CIT unveiled its debt exchange offer, which would have let bondholders tender their holdings for new, longer-dated bonds and preferred stock. But it also began soliciting votes for the prepackaged bankruptcy option. Under federal bankruptcy law, approval of such a plan requires the support of more than 51 percent of the number of creditors voting and more than two-thirds of the dollar value of those bonds.
CIT said in a statement that about holders of about 85 percent of its $30 billion in bond debt participated in the voting. Those investors voted almost unanimously to support the prepackaged bankruptcy plan.
Last week, the company secured several important agreements to aid its prepackaged bankruptcy plan. It obtained a $4.5 billion loan from several investors, including bondholders who lent it $3 billion earlier this summer. It also reached an accord with Goldman Sachs that would preserve a $2.13 billion loan even through bankruptcy protection, while paying only a portion of a $1 billion termination fee.
CIT also ended a fight with Mr. Icahn, who had offered to pay bondholders 60 cents on the dollar if they rejected the company’s prepackaged bankruptcy offering. Mr. Icahn instead offered a $1 billion loan, although people close to CIT said the company does not expect to use the financing.
The company will be represented in bankruptcy by the investment bank Evercore Partners, the law firm Skadden, Arps, Slate, Meagher & Flom and the turnaround consulting firm FTI Consulting.
– Michael J. de la Merced
