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News Link • Economy - Economics USA

CIT seen filing for bankruptcy in coming days

• Reuters
CIT Group (CIT.N) is likely to file for bankruptcy in the coming days, analysts and experts said.

The lender to small and medium-sized businesses is trying to restructure its debt, and is offering investors two options.

One path would be getting its unsecured debt holders -- who hold a total of about $30 billion -- to voluntarily exchange their bonds for new securities and equity. That path would avoid a bankruptcy filing.

1 Comments in Response to

Comment by Paulthecabdriver Farah
Entered on:

The article contains the following quote: "A business like this has to get in and out of bankruptcy fast, because if they're lingering, I would think competitors would start poaching customers," said Stephen Lubben, a law professor at Seton Hall's School of Law...  Who made this rocket scientist a law professor?  I think the article should have said:  "If it looks like CIT will go tits up, customers will flee like rats deserting a sinking ship."  And by what bizarre law is a company that runs itself into the ground allowed to "restructure" and continue business?  How and why did we ever let that happen?  

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