CIT Group may have to file for bankruptcy protection.Byline: Daily Star Staff Summary: CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group Inc. said in a regulatory filing Tuesday it might have to file for bankruptcy protection if not enough bondholders participate in a recently launched debt exchange. The commercial lender Whilst nearly all lenders offer loans on a commercial basis the term commercial lender has differed meanings around the world.
NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of : CIT Group Inc. said in a regulatory filing Tuesday it might have to file for bankruptcy protection if not enough bondholders participate in a recently launched debt exchange. The commercial lender offered the grim assessment only a day after major bondholders agreed to provide it with a $3 billion loan. CIT, one of the largest lenders to US small and midsize businesses, was forced to scramble To encode (encrypt) data in order to make it indecipherable without having a secret key to "unlock" it. The term came from the early days of cryptography which camouflaged analog transmissions with secret frequency patterns. in recent weeks to line up new funding as it faced mounting liquidity pressure amid upcoming debt maturities and as customers tapped their credit lines. CIT said in the filing with the Securities and Exchange Commission that the new loan might not provide enough relief to cover the liquidity squeeze. CIT said it still needs to pay off about $7 billion in debt maturing over the next year, including $1 billion in August. It has launched an offer to repay that $1 billion in maturing debt at a discount. Shares of CIT tumbled 31 cents, or 24.6 percent, to 94 cents in midday trading Tuesday. CIT was forced to turn to bondholders in recent days for help after the government refused to save the company last week. CIT said late Monday it had reached a deal with key bondholders, including bond manager Pimco, to receive a 2.5-year secured loan facility. That $3 billion loan comes at a high price u an interest rate of about 10.5 percent. At the same time it agreed to the loan, CIT launched the cash-offer for $1 billion worth of senior notes due August 17. It is offering $825 for each $1,000 worth of notes tendered on or before July 31, and $800 for notes tendered between Aug. 1 and August 17. Lenders involved in the bailout bailout The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout. deal have agreed to tender all of their August 17 notes, CIT said. The company and the steering committee steer·ing committee n. A committee that sets agendas and schedules of business, as for a legislative body or other assemblage. steering committee Noun of bondholders now will work on drawing up a number of debt swap Debt swap A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt-equity swap. offers designed to alleviate CIT's debt burden and further shore up the company's cash position. Failing to garner enough tender offers for the upcoming debt could force it to file for bankruptcy protection, CIT disclosed in the SEC filing. Should CIT collapse, some experts fear it would deal a crippling crip·ple n. 1. A person or animal that is partially disabled or unable to use a limb or limbs: cannot race a horse that is a cripple. 2. A damaged or defective object or device. tr.v. blow to an economy still bleeding hundreds of thousands of jobs a month. u AP Copyright 2009, The Daily Star. All rights reserved. Provided by Syndigate.info an Albawaba.com company |
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