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CIT Scrambling For $5-7 Billion DIP Loan
As prospects for an amicable resultion at Club CIT grow ever more blacklightish, the company is now alleged to be desperately seeking a $5-7 billion DIP loan (the kind you need when you file for Chapter 11, and when all your existing equity is wiped out). Reuters:
CIT Group Inc is planning to get a debtor-in-possession loan of $5 billion to $7 billion if its planned debt exchange offer fails and it files for prepackaged bankruptcy, sources familiar with the matter said on Thursday.
CIT has not finalized the loan yet but would do so over the next few days, if it has to file for bankruptcy, the sources said, declining to be identified because the talks are private.
Our advice to CIT: approach investment advisory guru Jim Cramer: it was a long and arduous 48 hours ago (and 100% higher) that the soon to be Comcast employee was pronouncing how the stock was "primed for upside." If there is anyone who would put their money where their mouth is, Jim Cramer is your man. And to a former hedge fund manager of Jim's caliber, $7 billion is parking meter money.
h/t Joe
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Ha ha ha ha (choke) ha ha ha ha (gasp)! Cramer is such a sword swallower.
He's swallowing something but I don't think it's swords.
LOL.
Someone should call his show and ask him about investing in CIT.
Call screener won't let any caller ask him about his failed
recommendations.
Now or ever.
Posts like this are the reason zero hedge quickly became my favourite website. I worked on wall street for years and watched the crap fly. I can't watch cnbc at all anymore. A friend recently told me he listens to Cramer for investment advice and he wasn't happy when I told him to stop listening immediately because the guy is a loud mouth nightmare. Some people never learn. I didn't think I would come across someone as cynical as me but I was wrong. Investors would do well to pay close attention to you.
To the people who have bought into Carmer, saying anything disparaging is down right infuriating to them.
Cramer is the second coming to Cramerica. I've lost a few clients because I politely suggested they spend some time actually looking at Cramer's record.
When you're in love, you don't wish to see the flaws. In fact, you CAN'T see the flaws. To do so would be too painful a Cognitive Dissonance.
today's joseph goebbels
here's more reason to believe what a moron Cramer really is. Why is anyone listening to this guy??
I'm clearly an idiot, I bought Oct $2 puts today. I can't wait for them to file for BK and see the stock soar 40%. That will make my day.
I'm such a sucker.
It might just be crazy enough to work...
no more contempt hath a man for his brother
than to rub his face in the excrement of his own lies....
cramer is a blown out pussy trying to suck
gas from an old pink cadillac through a camel
cigarette.....
This is the same story over and over just like GM, Chrysler, Palm, L3 etc. These companies don't ever turn a profit but continue to stay alive due to cheap money and naive investors. If capitalism was alive in the US, these pigs would all be BK and their competitors would be hiring. Malinvestments are everywhere I look these days.
Tyler, I bet you would pay $100 to give a few squawks on Cramer's Bull buzzer right now. Maybe you can bribe a stage back-door guard to let you sneak in for tonight's show... :)
CIT = Black Hole
Jimbo is lucky that R2D2 doesn't like stocks under a buck... if not that thing will be zero already
Hey wait a minute. Doesn't the Fed have 7 billion left in QE? Perfect!
at the right price (exhorbitant), this has oaktree and apollo written all over it... though its even a little big for them.
Apparently Apollo just hired Adam Applegarth of UK Northern Rock fame. Now there's a guy who knows how to evalutate risk and apply leverage to the result. Not.
The guy has admitted on national TV,how they plan a pump or dump,isn't that enough for the sec to shut down his show?isn't there some malepractice lawyer who would file a class action lawsuit against him and cnbc,in the name of all the fools who averaged down one of his recommendatin all the way down from $250 into infinity?why is it that goverment can sue cigarette manufacturers despite the warnings they have on cigarettes,but it seems that nobody can does anything to this scum?and no he is not a moron,he is a crimina. He does what he does according to a plan with his buddies,and he has admitted to that...
Cognitive dissonance seems to be the limiting factor in the American psyche, with a massive amount of Hegelian dialectic thrown in for good measure. Break down these barriers and you win.
Thank you for mentioning me.
The longer people avoid facing their cognitive dissonance, the more painful it will be. Thus assuring it won't be faced anytime soon. We Americans have been on a self absorbed orgy of conspicuous consumption for the past 30 years and the end won't come easily or quickly.
The average American is desperate to believe that the party isn't over quite yet. Particularly the baby boomer generation (of which I'm a part) who have convinced oursleves we could party hearty for 40 years and then retire to the comfort of the (ever increasing value) ATM we call our homes.
The entire generation has been hijacked and deep captured by the stock and real estate markets. We are entirely dependent on those "assets" increasing in value right up to the point where we retire, when we magically find some new sucker to purchase them at their peak.
These are very powerful world views that will not be surrendered without serious brain surgery or physical shocks to the system. Thus the reason for the wholesale acceptance by America's police forces of the Tasar.
You're under forty, aren't you, Mr 'we' ... ?
since he said he was a baby boomer i don't
think that was too bright of a question...
No, I'm over 50. Thus the reason I say I am part of the group of baby boomers and I use "we".
As one of the we group of ZH our reply for all who ask our age::::
Older than yesterday-younger than tommorrow--now ask me again and you will be Keel-hauled.
Nice stuff CD
while I agree with your post and generally think it's spot-on, there is a small percentage of the population that never bought into the conspicuous consumption argument, including myself.
Nor did I. But "we" still would like a functioning society in which to live out our golden years, right? My fear is America just might take down half the world with it. The developed half.
Golden Years, Cog ?? I got my golden years stuck right here ! ^ my @ss !!
Regarding CIT, Cramer didint say it was a "good buy", he said it was a good bye.
lol
Proven strategy: do the opposite of what Cramer suggests.
DIP CIT.
DOW -203.00. I can't wait to see Cramer's shit-eatin' grin on teevee tonite. Mr. new-bull-market's got some dancing to do.
cramer has about as much credibility as rupaul would as a new england patriots' quarterback....
I can just imagine the glee in the ZH office when these juicy little tidbits come across the screen... what are the odds that Cramer would make that statement and within 48 hours there is talk of DIP financing for CIT... it's like Christmas morning I bet... pretty soon it will be Cramer declaring war on bloggers... better watch out :-)
If God is good, we'll be treated to seeing Cramer bent over by an irate investor on his show with a DIP CIT shoved you knw where. Then I'll know god is watching. People who know little have and have little still have to trust someone. Unfortunately, too many are stuck with Cramer and similar ilk.
CD- cheer up. Its long been known life's a bitch and then you die. 40 years on crack is a pretty good run. if the greedy pig scumbags are reigned in, there well may be another 40 year run. Also your posts are insighful, sometimes funny: without them the world wld lose some color. In the now, hving the luxury to play the markets while doing what little one can to keep scumbags like Cramer out of the power structure is not such a bad deal.