For the CIT Group- It's Like Christmas, But They'll Still Shoot Their Eyes Out...
According to an article published by the Associated Press, the billionaire investor, and bondholder Carl Ichan agreed today to support CIT's restructuring and provide it with a billion dollar credit line- even if they do file for bankruptcy.
For weeks Ichan has been chomping at the bit on CIT's restructuring heels- even offering to buy minority debt holders at sixty-cents on the dollar.
On Wednesday, CIT got a $4.5 billion line of credit from lenders and bondholders; in addition to the $3 billion in financing provided earlier this summer.
Yesterday marked the final countdown, as CIT bondholders could agree to a debt exchange for new debt terms and stock- but the results of the vote are still pending.
Goldman announced this morning it would shave some debt off the top, in exchange for a fee, of course.
This afternoon, Ichan changed his views on the offer after CIT agreed to changes- namely its decisions regarding the board of directors if it files for bankruptcy.
The CIT Group is the financier to some 2,000 venders which supply over 300,000 retail stores- according to the National Retail Federation.
With all the funding, lines of credit and promises- its like Christmas or Chanukah for the debt riddled CIT Group.
But they'll still file for bankruptcy- or "shoot their eye out... kid..." like Ralphie in A Christmas Story.