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CIT Group Files for Chapter 11
CIT Group Inc. filed for bankruptcy protection Sunday in an attempt to restructure its debt while keeping loans flowing to the thousands of small and midsize businesses it funds. It is the fifth-largest bankruptcy in U.S. history. Billionaire investor and bondholder Carl Icahn will provide the century-old commercial lender with $1 billion in funds while the company restructures. CIT’s move will wipe out holders of its common and preferred stocks, meaning the government will most likely lose the $2.3 billion it pumped into the company last year before declining the lender more funds. Chief Executive Jeffrey Peek said that the bankruptcy “will allow CIT to continue to provide funding to our small-business and middle-market customers.” CIT had requested bondholders to exchange $30 billion in debt for new securities and equity, but the company's debt holder rejected the offer. The company hopes to emerge from bankruptcy within two months.
Plantagenet
What genius in the government loaned the deadbeat banksters at Citibank 2.3 billion dollars?
Obama should fire the government employees who stupidly lost 2.3 billion dollars of the taxpayer's money.
amapola101
Is this citibank,there is cit Oh my G-d is this Citibank,??I have 3 relatives that will have to move in with me , if this is what i think. This is scary. There is no one or nothing that one can believe. Who knows what is heading this way. really.
cbeenthere
Yes, amapola
The sky is falling.
amapola101
If carl Icohn could only help a group with a million I have 6 families that will restructure their businesses. Bankrupcy and Foreclosure nation. They are going to have to start to help the masses. It cannot continue to be big banks, big people.
bezvodka
I will believe this charitable intention when I see it translated into good deeds.
rolodexter
"CIT has $1 billion from investor Carl Icahn to fund operations while it reorganizes." Y'all know what Icahn is right. He's a chop shop. He's only after flipping companies, and gives a damn about that ever invisible greater good. His hard sell, muscle tactics are hardly ethical.
laughorcryagain
this is actually great news it shows the system can barf up a loser like it should
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