BREAKING: CIT Group Exits Bankruptcy

CIT Group Inc., the 101-year-old firm considered to be the largest commercial lender to the apparel and retail industry, won surprisingly quick court approval of a plan to cancel old shares, shed debt and exit bankruptcy court protection with new stock worth as much $11 billion, Bloomberg reported today.

After 5 1/2 weeks in bankruptcy, CIT's confirmation hearing moved quickly because of strong creditor support.

According to Bloomberg, U.S. Bankruptcy Judge Allan Gropper in New York today confirmed CIT's so-called prepackaged Chapter 11 reorganization plan, which already had creditor support when CIT filed for bankruptcy last month.

According to the report, the U.S. won't recover much, if any of the $2.3 billion in taxpayer money used in a bailout of CIT, and shareholders will be wiped out.

CIT's plan reduces the company's debt by eliminating $10.5 billion to $11 billion in unsecured debt. It extends maturity dates of the company's bank and bond debt.
This ad will auto-close in 10 seconds