CIT Names Independent Directors, Waives SBA Fee
New York–based commercial lender CIT Group Inc. named four independent directors to its board and continues to look for three more directors and a new chief executive officer.
The company, which emerged from Chapter 11 bankruptcy protection on Dec. 10, previously announced plans to restructure its board of directors to include seven new independent directors, who will be named by the company’s debtholders, and five continuing directors. The company’s chief executive officer, Jeffrey M. Peek, announced in October he planned to retire at the end of the year. The company’s board formed a search committee to find Peek’s replacement.
The new independent board members include Michael J. Embler, the former chief investment officer of Franklin Mutual Advisers LLC, an asset-management subsidiary of Franklin Resources Inc., and Arthur B. Newman, the senior managing director and co-head of the Restructuring and Reorganization Advisory Group at Blackstone Group L.P.
Also joining the board is Daniel A. Ninivaggi, who has served as counsel to the international law firm of Winston & Strawn LLP since July. Prior to that, he held several executive positions at Lear Corp., including his most recent post as executive vice president and chief administrative officer. The fourth new board member is R. Brad Oates, chairman and managing partner of strategic advisory firm Stone Advisors L.P. The company, which specializes in distressed asset situations, is currently assisting the FDIC in resolving bank receiverships.
During restructuring, CIT pledged to commit $500 million to support its Small Business Lending group. The company also recently announced a special lending offer for its Small Business Lending customers. Through March 10, 2010, CIT will waive its $1,000 packaging fee for all approved Small Business Administration loan applications.
“The small-business sector remains a key driver of job creation in America,” said Chris Reilly, president of CIT Small Business Lending. “These recent announcements reflect our commitment to bringing much-needed credit to this sector and to helping small businesses access the capital they need to weather this difficult economic environment.”—Alison A. Nieder
