CIT Sees $0.06-$0.37 Recovery On Unsecured Claims If It Files For Bankruptcy
Some Mutual Assured Destruction, Friday edition, courtesy of CIT: $35 billion in estimated General Unsecured Claims recovering between $2 and $13 billion if company is "forced" to file for bankruptcy.
Without an approved restructuring plan, the Company will likely file for bankruptcy without the benefit of a plan of reorganization and stakeholders will lose significant value.
- Substantial damage to the franchise
- Inability to insulate valuable operating businesses from the proceedings
- Increased risk of seizure of CIT Bank
- Uncertainty and constraints with respect to liquidity
- Significant bankruptcy related expenses
- Lengthy process in court
- Estimated recovery value for general unsecured claims in a accelerated liquidation is between 6 - 37 cents per $1.00