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For the CIT Group- It's Like Christmas, But They'll Still Shoot Their Eyes Out...

Travis's picture




 

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.

 

 

 

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Fri, 10/30/2009 - 15:40 | 115466 Anonymous
Anonymous's picture

Somebody said "it's just CIT.. not Citi". For me this is a big blow, am I wrong?

Fri, 10/30/2009 - 15:56 | 115486 Fish Gone Bad
Fish Gone Bad's picture

This will all end badly for everyone.

Fri, 10/30/2009 - 16:29 | 115527 Anonymous
Anonymous's picture

+1

merry christmas in advance everyone! [while it can still be merry.]

Fri, 10/30/2009 - 16:50 | 115559 spekulatn
spekulatn's picture

Pardon me? HELLLLLLOOOOO. Need I remind you of the most excellant call by a certain someone on TV....yes he is on friggin TV,so youknow its gotta be friggin true...

 

Anyways, he said that CIT is a friggin buy(at higher prices too) because it ain't going bankrupt and the shares will ONLY go higher because it was said on TV by the most watched dude on the most watched channel.

 

P.S. Sorry about the fish

 

 

 

"MARK IT ZERO, DUDE"

 

 

Fri, 10/30/2009 - 16:47 | 115552 Anonymous
Anonymous's picture

So does a strategic default with Shitty Bank make sense now or wait till the bankruptcy? How long would one hold out for a reduced settlement offer or do you just tell them to stick it in their pie hole?

Fri, 10/30/2009 - 16:57 | 115566 Anonymous
Anonymous's picture

From my understanding, now at least, CIT is not the same as Citi. Two different entities. Still, screw Citi.

Fri, 10/30/2009 - 17:36 | 115609 Dogfather
Dogfather's picture

The gutter-rat Icahn's pockets are on fire, let's pray that all of his
$1 Billion go up in smoke...

Fri, 10/30/2009 - 18:02 | 115630 You Cant Handle...
You Cant Handle the Truth's picture

"Citi and CIT Are Primed for Upside"  By JIM CRAMer

9/29/09

Fri, 10/30/2009 - 19:50 | 115730 Anonymous
Anonymous's picture

Forget Galleon: What about Goldman’s ex-boss?

It’s kind of amazing that with all the uproar over the Galleon business, nobody is making much hay over the recent revelations about the AIG bailouts, which make former Goldman chief and former New York Fed chairman Stephen Friedman look every bit as guilty of insider machinations as Raj Rajaratnam of the Galleon fund.

All of this matters for two reasons. One, it’s yet another example of how Goldman’s success isn’t attributable to how “smart” the bank and its employees are.

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