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Does 10-Q delay signal Chapter 11 for CIT? Print E-mail
Tuesday, 11 August 2009


(Reuters) Troubled lender CIT Group 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 U.S. 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 August 17. 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 August 17 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.

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