CIT delays report, could have to file bankruptcy

CIT delays report, could have to file bankruptcy
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First Published: Tue, Aug 11 2009. 05 28 PM IST
Updated: Tue, Aug 11 2009. 05 28 PM IST
New York: Troubled lender CIT Group Inc said on Tuesday it has delayed filing its second-quarter report with regulators and said if it could not complete its debt tender or arrange other financing, it would file for bankruptcy.
CIT is still reviewing assets and businesses that it may sell as well as the related valuation adjustments that must be included in the quarterly report, it said in a filing with the US Securities and Exchange Commission.
New York-based CIT, which last month secured $3 billion in emergency funding from bondholders, has been battling to restructure its debt and avoid bankruptcy.
The company has launched a tender offer for its outstanding $1 billion floating-rate notes due 17 August. In a filing on Tuesday, it said if this offer were successful, it would use the proceeds from its emergency funding to complete the tender and make the payment on the 17 August notes.
The 101-year-old lender had already postponed its results, originally expected on July 23, while arranging the emergency funding. It said last month it expected a second-quarter loss of more than $1.5 billion.
Shares in the company slipped slightly to $1.46 in premarket trading, down from $1.48 on Monday.
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First Published: Tue, Aug 11 2009. 05 28 PM IST