CIT Plan Of Reorganization And Disclosure Statements Filed: 700 Pages Of Details Follow
Some highlights from the Disclosure Statement filed a swift 18 hours after filing.
Treatment of various unsecured impaired classes:
The latest taxpayer-to-Goldman funding scheme:
Goldman TRS Facility
On June 6, 2008, a wholly owned subsidiary of CIT executed a long-term, committed financing facility with Goldman Sachs International (“GSI”) that is structured and documented as a total return swap (“TRS”). The TRS is secured and is guaranteed by the Company and CIT Financial (Barbados) Srl. The maximum notional amount of the facility is $3 billion during the first ten years of the contract, and thereafter the maximum notional amount declines by $300 million per year for ten years. The arrangement obligates the CIT subsidiary to pay GSI an annual facility fee equal to 2.85% of the maximum notional amount for that year. The CIT subsidiary has the right to terminate the facility before maturity; however, if it did so, or if the facility was terminated by GSI due to a CIT default, including a bankruptcy of CIT, the governing documents state that the CIT subsidiary would be required to pay GSI a make whole amount equal to the discounted present value of the annual facility fee for its remaining term. The Company and GSI are currently in negotiations concerning an amendment to this facility but no amendment has been agreed to.
Conditions to successful consummation of POR - The Liquidity And Leverage Condition:
A sufficient number of Old Notes tendered into the exchange and certain other debt instruments have been renegotiated so that, after giving effect to the Offers and such renegotiations, the face amount of the Company’s total debt would be reduced by at least $5.7 billion (excluding any CIT Long Term Old Notes tendered) and its remaining unsecured debt maturities (excluding foreign vendor facilities) would not exceed $500 million in 2009, $2.5 billion during the period from 2009 to 2010, $4.5 billion during the period from 2009 to 2011 and $6.0 billion during the period from 2009 to 2012, in each case on a cumulative basis (which we refer to as the “Liquidity and Leverage Condition”);
Liquidation Analysis: apparenty some disagreement with Egan-Jones here:
Fresh Start/Post-Reorg Balance Sheet
And, of course, the hockeysticking "Cash from operations" that has never been attained in over 1 trillion Disclosure Statements filed.
Full 700 page CIT POR/DS below: