Bankruptcy Knoxville

As was widely reported previously, CIT Group has filed under Chapter 11 bankruptcy. It’s of interest to the U.S. economy because hundreds of thousands of small businesses all across the nation rely on this company for financing. A quick and effective resolution to the bankruptcy is in the best interest of everyone involved. Luckily that appears to be happening:

“CIT said holders of 83 percent of its debt took part in the approval process for its reorganization plan, and holders of 92 percent of outstanding principal supported the plan.

U.S. Bankruptcy Judge Allan Gropper is scheduled at a December 8 hearing to consider whether to approve the plan, which calls for unsecured debtholders to receive 70 cents on the dollar of new notes plus new common stock.

CIT said some noteholders who did not vote for the plan will have until December 4 to accept notes and stock in exchange for their holdings, on the same terms as other noteholders who voted in favor of its Chapter 11 plan.

On Monday, CIT posted a $1.07 billion third-quarter loss, in part because the company more than tripled the amount it set aside for credit losses from a year earlier.”

Source: http://www.reuters.com/article/ousivMolt/idUSTRE5AI3N020091119