CIT Group one of the nations leading banks filed for Chapter 11 bankruptcy protection on Sunday. This comes after last minute negotiations to restructure it’s debt broke down. CIT had about 90% of all of its debtors agreeing to lend billions of dollars to keep CIT afloat.
However, a small group of debtors opposing granting additional funds stood in the way. CIT took the only route possible by filing for Chapter 11.
“The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy,” CEO Jeffrey Peek said in a statement.
CIT creditors approve the bankruptcy.
Now CIT will receive Debtor-In-Possession financing.
CIT Group is the largest lender to small and medium businesses in the nation.
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