CIT finally gets there. Bankruptcy.

This has been a long ongoing story.  But well, like most things, it came to an end.  Business lender CIT has filed for bankruptcy on Sunday despite some efforts to rescue it.

In a statement, CIT said it had asked the bankruptcy court to quickly confirm its prepackaged bankruptcy plan, which has broad support from its debt holders and on Friday received backing from Carl Icahn, the billionaire investor.

Mr Icahn, who had been critical of the CIT plans, has agreed to provide a $1bn line of credit. The company said it would aim to emerge from bankruptcy by the end of the year.

But the futures seem to be pointing to a positive start, which kind of tells us it isn’t necessarily a worrying issue as we once thought.  Maybe the creditor support calmed the nerves?

Source: FT

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