Hmmm…
It looks like CIT Group may be able to pull off a 6.5B loan to keep it afloat:
CIT Group Inc (CIT.N) is getting closer to finalizing the terms of a new loan that would give the commercial lender, trying to avoid bankruptcy, $3 billion to $6.5 billion, two sources familiar with the matter said on Wednesday.
The terms of the loan, being arranged by Bank of America (BAC.N), could be finalized as soon as this week, the sources said, declining to be identified because talks are private. One of the sources warned that the situation was fluid and the loan could be delayed.
The loan would work as a secured facility in case of a successful debt exchange offer by the lender, or as a debtor-in-possession loan if CIT has to file for bankruptcy, the source said.
CIT would use most of the additional money, except about $500 million, to repay existing debt, the sources said.
While a positive move (from an operations point of view) there is nothing like getting a loan to pay back debt.
Related posts:
- CIT Group unable to make bondholders happy, try to "sweeten" terms of restructuring plan.
- CIT still might face bankruptcy after debt swap
- Credit Rating agency, Egan-Jones, Urges Rejection of Icahn backed $6B loan for CIT Group
- Update: CIT secures $4.5B credit facility
- CIT debt swap struggles, bankruptcy looms