Over the weekend, CIT Group, a large specialty lender / factor, filed for for Chapter 11 bankruptcy protection. According to the Times Online, “The collapse of the 101-year-old Utah-based lender, which trails behind only those of Lehman Brothers, Washington Mutual, Worldcom and General Motors in size, will leave US taxpayers with a $2.3 billion (£1.4 billion) bill.
It is believed the board of the lender, which has $71 billion of loans, approved the filing after its creditors agreed to a pre-packaged plan designed to ensure it emerges from bankruptcy with the core of its business intact.” But what are the most important key takeaways that CIT’s filing will have for the retail supply chain? Earlier today, I spoke to a number of experts in the area who had strong perspectives on what CIT’s filing will mean. I’ll share these findings in a series of write-ups today and tomorrow.
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- CIT Group seeks reorganization in bankruptcy court (ctv.ca)
- Creditors Back CIT’s Bankruptcy (nytimes.com)
- Retail Faces Uncertainty as CIT Enters Bankruptcy (abcnews.go.com)
- CIT Bankruptcy Filed: US Will Likely Lose $2.3 Billion, Goldman Sachs Will Gain $1 Billion (huffingtonpost.com)