Don Ke nobi
/ 83.5.215.* / 2009-08-11 13:52
CIT Group Inc., the 101-year-old commercial lender trying to avoid collapse, said bondholders don’t plan to push for a bankruptcy filing.
“The company and a steering committee of the bondholder lending group do not intend for the company to seek relief under the U.S. Bankruptcy Code, but rather will pursue restructuring efforts as part of the comprehensive restructuring plan to enhance the company’s liquidity and capital position,” the New York-based lender said today in a filing.
CIT, which turned to bondholders for a $3 billion rescue financing after failing to get a second government bailout, said last month it doesn’t have the money to repay securities maturing Aug. 17 and may file for bankruptcy if it fails to get 90 percent participation in its tender offer.
“If the pending tender offer is not successfully completed, and the company is unable to obtain alternative financing, an event of default under the provisions of the credit facility would result and the company could seek relief under the U.S. Bankruptcy Code,” CIT said in today’s filing.
The company delayed filing its quarterly report with the Securities and Exchange Commission, saying today that senior management has been spending “significant” amounts of time in the past several weeks working on the restructuring and have been unable to meet the filing deadline without “unreasonable effort and expense.”