CIT Close to $3 Billion Rescue Deal with Bondholders
CIT Group Inc. is reportedly close to finalizing a $3 billion deal with bondholders—financing that may keep the beleaguered commercial lender from seeking bankruptcy protection. On July 19, the Wall Street Journal, Bloomberg and Reuters reported on the deal, which is expected to be announced shortly.
Late in the day on July 19, several CIT bondholders, including Pacific Investment Management Co., Oaktree Capital, Silver Point Capital and Centerbridge Partners, reportedly agreed to the deal, in which investors would pump $3 billion in funds into CIT, according to Reuters. Although the deal doesn’t address all of CIT’s fiscal problems, it is expected to keep the company from filing for bankruptcy and from having to sell off parts of the company.
CIT Chief Executive Officer Jeffrey Peek is expected to remain at the helm at the company. —Alison A. Nieder
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