Government to likely lose $2.3 billion it spent to prop company up last year
NEW YORK - Lender CIT Group has filed for bankruptcy protection, in an effort to restructure its debt while trying to keep loans flowing to the thousands of mid-sized and small businesses.
CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT said in a statement that its bondholders have overwhelmingly approved a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.
"The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," said Jeffrey M. Peek, chairman and CEO. Peek has said he plans to step down at the end of the year.
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8 comments:
Thanks Osama Bin Biden. Nothing like pushing this country further into dept and causing the bankruptcy's.
Ya gotta love Chicago style politics and financing. Get humongous loans/gv'mt. funding, then say, "Oops, we're sorry, but we screwed up and can't fulfill our obligations." Then they walk away leaving the lenders holding the debt, the officers bail out with their "contractural" golden parachutes, and the working guy gets stiffed with the bill.
Are we ever going to DEMAND accountability from the government and their illicit cronies? HR1207 got gutted by some douche bag representative. It was our best chance to get some accounting of the Fed. Reserve. Call your representative and DEMAND they reinstate the full weight of the Fed audit back into the bill. And while you're at, do the same with your senator for the corresponding legislation in that legislature as well.
I say liquidate the company! Let other better run companies have their assets. I am so sick of hearing how we should feel sorry for poorly run companies. If it was my company the bank would roll in and auction it off...I think the US government should do the same.....If they are good loans someone will snatch them up
I guess old Joe still thinks that stimulus is working better than anticipated. How can anyone still support this inept administration? If we don't replace the congress and Obama we are doomed to fail. We will certainly be no better off then other 3rd world countries. I really believe that is Obamas goal. He believes Americans have had it to good for too long.
There goes another 2.3 billion of our money. It's just what the puppet president ordered-a systematic bankruptcy and destruction of the American economy. He is not the bumbling idiot that he appears to be. He and his handlers are carefully orchestrating the downfall of our country. The mainstream media is on board as well as a lot of the politicians that are supposed to be representing us. Wake up Jefferson-the new revolution is drawing nearer every day.
Shut them down. They have failed. Set the example.
Just a few month's ago, CIT was paying out dividends.
So the bankruptcy isn't Obama's fault.
What can be blamed on all our leaders is trying to help scumweasels stay solvent when they refuse to do things like cut bonuses and stop dividends.
Stinking corporate welfare!
I love this change I can beleive in. Yes We Can destroy America and let the Politians / Crooks get richer. No job but take my money, you have made my retirement account worthless, and give it away. I try to be responsible and this means I have to pay for the bums who are not responsible. Again thank you Obama, Liberals and Unions.
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