On October 1, 2009
CIT Group Failure Threatens Halt To This Year’s Financial Sector Recovery
Just as the financial services industry seems to have made it past the worst of the economic meltdown, one small lender now threatens to reverse that trend. CIT Group, a lender to small and medium sized businesses, appears to be on the brink of collapse for the second time this year. CIT Group averted bankruptcy over the summer, when it secured a $3 billion loan with its bondholders, and managed to tweak a giant tender offer for debt maturing shortly thereafter. The move served as a mere stopgap however, since the lender had a $2.9 billion negative cashflow position at the end of June this year. With the moment of truth at hand once again, insiders say that CIT is…
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