CIT to File for Bankruptcy

November 02, 2009 BY CAPSULESNEWS

cit-group-fail.jpgCIT’s been a pretty integral part of doing business in our industry and its recent troubles have rocked the worlds of many in our market. Well, today, CIT Group announced that it will file for bankruptcy. WWD reports: "CIT Group Inc.’s board Sunday afternoon approved a prepackaged bankruptcy plan for just the holding company, leaving the key factoring division to continue its operations and lending arrangements to apparel vendors without interruption. Under the terms of the prepackaged plan, to be filed in federal court, most bondholders would get new debt at 70 percent of the face value of old debt, plus equity in the company."