CIT Said to Weigh Financing From Citigroup, Barclays

Sept. 30 (Bloomberg) -- CIT Group Inc., the commercial lender that has said it may be forced to file for bankruptcy, is considering an offer of financing from Citigroup Inc. and Barclays Capital, people familiar with the situation said.

The 101-year-old company’s bondholders are also seeking to provide about $2 billion in loans as a restructuring deadline approaches tomorrow, said the people, who declined to be identified because the negotiations are private. New York-based CIT may choose other options, the people said.

CIT needs to cut debt and raise capital after posting more than $5 billion in losses over the past nine quarters and losing access to the unsecured debt markets it relied on for funding. The company said in July it may seek court protection from creditors after Chief Executive Officer Jeffrey Peek failed to win a second government bailout and had to turn to bondholders for $3 billion in rescue financing. CIT said in an Aug. 17 regulatory filing that it has to come up with a plan “acceptable” to the majority of a bondholder steering committee that provided it with the emergency cash by Oct. 1.

CIT Said to Weigh Financing From Citigroup, Barclays (Update3) - Bloomberg.com

__________________
cheers Steve
Forum Admin - teaboy and general gofer...

Forum Rules and FAQ's at a glance | Find me on Google+ | or even Facebook!

My Local Services - The UK and US Online Business Directory | JobsVitae - Recruitment Help and CV Creation

If you're here to spam, then expect a ban