In the News: Rejoice, for CIT is Spared!
This one’s a short one, but a significant one.
Unable to come to a solution with anyone else, CIT has surprised us all yet again, by securing a $3 billion loan from a group of its bondholders. The terms of the loan are 2.5 years at L+1000bps (yup, 10% over LIBOR – sweet). The hope here is that this loan will provide CIT with enough time to adequately restructure and resize their current obligations – otherwise, it is back to the steps of bankruptcy court for them.
