With the Fed breathing down its neck and bankruptcy still looming, CIT just bought a little more time to restructure.
WSJ: CIT Group Inc.’s tender offer for its $1 billion floating-rate notes due Monday was successful, giving the lender a little more breathing room on its debt, though the 59.8% of notes that were tendered was below the level the company announced earlier this month.
The struggling commercial lender, which has been facing a worsening liquidity crisis as its customers drew down credit lines in fear that they might disappear, has been working in recent weeks to avoid bankruptcy.
“The completion of this tender offer is another important milestone as the company continues to make progress on the development and execution of a comprehensive restructuring plan,” says CIT.
Great. Maybe CIT can keep this short-covering rally going! (Oh, nope. Now that the market is open, it looks like that’s just wishful thinking.)
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