Oct 28, 2009 (MarketNewsVideo.com via COMTEX News Network) -- CIT group announced today that it borrowed $4.5 billion from a diverse group of lenders, including many of the company's bondholders.
The company said it turned down a loan from financier Carl Icahn, who has been critical of management recently. CIT stated that it was given less than one hour to review the offer.
The company has been trying to cut its debt after it was denied access to a government program that would have guaranteed the debts of other other large lenders, including General Electric (GE) and Citigroup (C).
Bondholders will have until midnight on October 29 to approve the new debt exchange. If it is not approved, bankruptcy seems likely for CIT.
Shares are trading up nearly eleven and half percent in late trading.
The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=200910CIT102809&mv=1.
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