CIT bankruptcy filing one of largest in history

TRD MIAMI /
Nov.November 02, 2009 11:29 AM

Manhattan-based commercial lending firm CIT Group filed for a prepackaged bankruptcy yesterday in the Southern District of New York, marking one of the biggest filings in U.S. history. The worldwide credit crisis and recession were named as the two biggest culprits in the downfall of one of the nation’s largest commercial lenders. The group received $2.33 billion last December as a part of the federal government’s Troubled Asset Relief Program, but the aid did little to stymie the rapid decline in value among the firm’s many investments. The loss is one of the biggest for the TALF program so far. While many of CIT’s creditors have reportedly agreed to the reorganization program, Jack Williams, a bankruptcy law professor, told Reuters that the bankruptcy could do even more to harm CIT’s stability. “The longer a financial institution stays in bankruptcy, the more the value of the business dissipates,” Williams said. “It’s faith and trust and perception that are so important for a financial institution.” The firm reportedly hopes to reduce its debt by $10 billion in the bankruptcy. CIT had $71 billion in assets and $64.9 billion in debt, according to mid-year figures.


Related Articles

arrow_forward_ios
State report finds open gas valve fueled building explosion at Plantation shopping center

State report finds open gas valve fueled building explosion at Plantation shopping center

Bayside Marketplace is planning another high-rise entertainment venue with a view

Bayside Marketplace is planning another high-rise entertainment venue with a view

Construction of downtown Hollywood high-rise may start soon

Construction of downtown Hollywood high-rise may start soon

South Florida firm, partner acquire Tampa office building for $29.4M

South Florida firm, partner acquire Tampa office building for $29.4M

Developer borrows $105M, breaks ground for mixed-use Flagler Village project

Developer borrows $105M, breaks ground for mixed-use Flagler Village project

Moishe Mana plans mixed-use project with logistics theme next to airport in Panama

Moishe Mana plans mixed-use project with logistics theme next to airport in Panama

Power restored after blackout envelopes West Side of Manhattan

Power restored after blackout envelopes West Side of Manhattan

Virgin Trains may announce 3 new train station sites in South Florida by year-end

Virgin Trains may announce 3 new train station sites in South Florida by year-end

arrow_forward_ios