CIT revises restructuring plan

CIT Group Inc, a leading provider of financing to small businesses and middle market companies, has amended its restructuring plan to further build bondholder support. The amendments have been approved by CIT's board of directors and the steering committee of CIT's bondholders, a company release said.

On 1 October, CIT announced a series of offers to exchange certain outstanding series of notes and a voluntary package plan for reorganisation which, it said, would generate significant capital and provide multi-year liquidity through the material reduction of CIT's outstanding debt.

"Over the last two weeks, we have continued to work constructively with the steering committee and believe that these amendments will further build bondholder support for our restructuring plan," said Jeffrey M Peek, chairman and CEO. "Through the completion of the exchange offers or an expedited in-court restructuring process, we will reduce the uncertainty around our business and further maximise the value of our franchise. Either approach is intended to ensure that CIT becomes a well-capitalised bank holding company that will serve as a source of strength for CIT Bank as we implement our new bank-centric funding model," he added.

Amended Terms of the Restructuring Plan

The amended terms of the restructuring plan include, among others:

A comprehensive cash sweep mechanism to accelerate the repayment of the new notes;
The shortening of maturities by six months for all new notes and junior credit facilities;