CIT File for Bankruptcy

I read this news from Yahoo headlines this morning that the CIT Groups has filed a Chapter 11 protection for their attempt to restructure their debt while trying to kept their badly needed loans in thousands of mid-size and even small businesses. They make a petition in New York City bankruptcy court last Sunday, November 1, 2009 after bondholders failed in debt-exchange.

CIT said in a statement that its bondholders overwhelmingly opted for a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.

CIT Groups is one icon in United States corporate history which follows from Lehman Brothers, Washington Mutual, WorldCom, and General Motors. This is still the effect of the worldwide recession which will be observed for the matter of years before businesses will come back into normal situation. Read more...