CIT To Give 93% of Firm to Debtholders

yaobooyao

CIT Exchange To Give Debtholders 93 Percent of Firm
Published: Friday, 2 Oct 2009 | 11:06 AM ET
By: Reuters

CIT Group's proposed debt exchange would give bondholders about 92.5 percent of the company, the company said Friday morning.

Current preferred shareholders would end up with 5 percent of the company's equity and voting rights, while current stockholders would get 2.5 percent.

The plan offers bondholders new debt in the company as well. Investors holding notes maturing in 2009 would get more new debt than those holding debt maturing between 2013 and 2018.

The company is also looking for votes for a prepackaged bankruptcy, should the exchange offer prove unsuccessful. Under the terms outlined on Friday, most debtholders would get 70 cents of new debt on the dollar, plus new common stock.

Founded more than a century ago, CIT's problems emerged in recent years following CEO Jeffrey Peek's idea to tap into potentially profitable but risky businesses such as as subprime mortgages and student loans.

The financial meltdown triggered a sharp rise in CIT's loan losses and credit costs, leaving the company on the verge of collapse. The lender to businesses from retailers to sport teams has lost close to $5 billion since the end of 2007.

CIT shares closed down 15 cents, or 12.4 percent, at $1.06 on Thursday

Diffusion

... meaning stock holder almost got wiped out?

yaobooyao

... meaning stock holder almost got wiped out?
Diffusion 发表于 2009-10-4 23:46

现有普通股股东只占重组后的2.5% 股份。 2.5%，比手纸便宜

ROOKIE2

zhishun

抄底??????????

buddha

有些底是可以抄的, 有些就可能抄点粪上来.

zhyangi

xz214