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Hier nun die "WICHTIGSTEN" Gegebenheiten aus dem Jahr 2009 !!!

17.08.2009 20:55
US-Mittelstandsbank CIT wendet Insolvenz vorerst ab

DJ US-Mittelstandsbank CIT wendet Insolvenz vorerst ab

NEW YORK (Dow Jones)--Die US-Mittelstandsbank CIT hat eine Insolvenz zunächst abwenden können. 59,8% der Anleihegläubiger hätten ein Umtauschangebot für eine 1 Mrd USD schwere Anleihe akzeptiert, teilte die CIT Group Inc am Montag mit. Bedingung für die Vermeidung eines Insolvenzantrags war eine Mindestannahmequote von 58% für den Umtausch der am 17. August fälligen Anleihe.

Dabei hatte das Unternehmen die Mindestannahmequote Anfang des Monats auf von 90% gesenkt. Die Bank wird 875 USD für jede Anleihe im Nominalwert von 1.000 USD zahlen.

Mitte Juli hatte CIT eine drohende Insolvenz dank der Unterstützung durch die Anleihegläubiger abwenden können. Sie hatten dem New Yorker Institut einen Notkredit über 3 Mrd USD gewährt. Zuletzt hatte der Finanzdienstleister aber dennoch davor gewarnt, Gläubigerschutz beantragen zu müssen.

Zudem hatte CIT die Veröffentlichung ihrer Zweitquartalszahlen verschoben. Diese sollen nun am heutigen Montag vorgelegt werden.

Webseite: www.cit.com
CIT peilt nach Umschuldung außergerichtliche Sanierung an
Dienstag, 18. August 2009, 15:29 Uhr
http://de.reuters.com/article/companiesNews/idDEBEE57H0BK20090818

New York (Reuters) - Der krisengeschüttelte US-Mittelstandsfinanzierer CIT will nach einer erfolgreichen Umschuldung seine Sanierung vorantreiben.

Die Bank wolle ihre Finanzen außerhalb eines Konkursgerichts wieder in den Griff bekommen, teilte CIT am Montag mit. Noch vor dem 1. Oktober solle mit der Umsetzung eines Restrukturierungsplans begonnen werden. Dazu müssten unter anderem Unternehmensteile veräußert werden. Das Kreditinstitut hatte eine drohende Pleite dank der Umschuldung zum Wochenauftakt vorerst abgewendet. Knapp 60 Prozent der Inhaber einer am Montag fälligen Anleihe hätten das Angebot angenommen. Die Offerte hatte ein Volumen von einer Milliarde Dollar.

In einer weiteren Pflichtveröffentlichung gab CIT einen Milliardenverlust bekannt. Demnach betrug das Minus im zweiten Vierteljahr 1,68 Milliarden Dollar. Vor Jahresfrist waren es noch 2,08 Milliarden Dollar. Damit schnitt die Bank etwas besser ab, als von Analysten erwartet worden war. Der Verlust je Aktie betrug 4,30 Dollar. Bei den Krediten musste CIT netto 355,9 Millionen Dollar als Verlust abschreiben. Im zweiten Quartal des Vorjahres waren es 87 Millionen Dollar. Für dieses Jahr rechnet CIT nicht mehr mit schwarzen Zahlen.

Im Juli hatte eine Gruppe von Gläubigern den Kreditgeber von Tausenden Einzelhändlern und kleineren Firmen mit einem Notdarlehen über drei Milliarden Dollar vor dem Aus bewahrt.

CIT hat im Dezember Staatshilfen in Höhe von 2,3 Milliarden Dollar aus dem US-Rettungsprogramm für die Finanzbranche (TARP) erhalten. Das Haus ist in der Finanzkrise ins Stolpern geraten, weil es sich im Kreditboom zu viele Hypotheken- und Studentendarlehen aufgeladen hatte.
US-Bank CIT taumelt weiter am Abgrund

Trotz Notkrediten in Milliardenhöhe drängt ein Quartalsverlust in Höhe von umgerechnet gut einer Milliarde Euro den Mittelstandsfinanzierer wieder an den Rande des Zusammenbruchs.
EPA



Die schwer angeschlagene US-Mittelstandsbank CIT steht nach einem Milliardenverlust im zweiten Quartal erneut am Abgrund. Das Institut gab ein Minus von 1,68 Milliarden Dollar (1,19 Mrd. Euro) für den Zeitraum von April bis Juni bekannt und warnte vor einer Insolvenz, sollte die Restrukturierung nicht gelingen. Derzeit übersteigen die Kosten, die CIT für die eigene Refinanzierung zahlt, die Einnahmen durch die Vergabe von Krediten.

CIT erklärte, es gebe weiterhin substanzielle Zweifel über die Fähigkeit, die Geschäfte aufrecht zu erhalten. Das Unternehmen steckt bereits seit Mitte 2007 in Problemen. Es war stark in sogenannten Subprime-Krediten engagiert, Hypothekendarlehen an eigentlich nicht kreditwürdige Kunden. CIT hatte sich zudem die nötigen Summen für die Vergabe von langfristigen Darlehen kurzfristig am Kapitalmarkt besorgt. Mit dem Ausbruch der Finanzkrise ist der Markt für kurzfristige Refinanzierungen aber praktisch zusammengebrochen.

Hinzu kommt die wachsende Zahl von Unternehmens- und Verbraucherpleiten in den USA. CIT musste daher seine Vorsorge für faule Kredite im zweiten Quartal deutlich auf 588,5 Millionen Dollar aufstocken, vor einem Jahr belief sich die Risikovorsorge auf 152,2 Millionen Dollar.

CIT hatte sich Ende Juli mit großen Gläubigern auf einen Notkredit von 3 Milliarden Dollar geeinigt und damit eine Insolvenz abgewendet. Die Einigung war die erste Bankenrettung in den USA durch private Investoren seit dem Ausbruch der Finanzkrise. Die Regierung hatte Staatshilfen für das hoch verschuldete Institut abgelehnt. CIT versorgt nach eigenen Angaben gut eine Million kleine und mittlere Firmen in den USA mit Krediten.

(APA/AP)
Wer sich soviel Gedanken um d. US-Wirtschaft macht, macht auch nicht PLEITE !


September 21, 2009 08:30 AM Eastern Daylight Time
Retailers and Suppliers Take Stock of Economic Downturn Featured on CIT “5 Minute Capital” Podcast Series

NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today released its first podcast based on its new study, “U.S. Small and Middle Market Outlook 2009: Retailers and Suppliers Take Stock of Economic Downturn.” The podcast is featured on 5 Minute Capital (www.5minutecapital.com), a series of 5-minute podcasts featuring senior CIT executives commenting on current market conditions and trends in the middle market.

In this installment, Jon Lucas, Chief Sales Officer and Executive Vice President of CIT Trade Finance, provides his perspective on how retail suppliers have been affected by the economic downturn. He comments, “The suppliers that sell into retail channels of distribution are experiencing difficulties. Since retailers have reduced their inventories, vendors that sell product to retailers are seeing fewer orders. At the same time, the price/value equation is being rewritten, and suppliers are working to manufacture a quality product at price points that are salable in the market today.”

In discussing how vendors will adapt to the new retail environment, Lucas adds, “I think both on the supplier side and the retail side you need to reinvent yourself everyday. You are going to see the vendors trying to reinvent themselves and bring different product with lower prices to market. It's going to be an interesting several quarters where conservative, cautious projections are in order.”

Middle market companies, a key component of the U.S. economy, account for more than $6 trillion in sales and employ almost 32 million Americans. U.S. small businesses employ nearly 59 million Americans (approximately half of all private-sector jobs), constitute approximately 97% of all identified exporters, and produce approximately 29% of the known export value.

EDITOR’S NOTE: Complimentary copies of the report are available for download at http://middlemarket.cit.com.

Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.

About the Report

The information in the U.S. Small and Middle Market Outlook 2009: Retailers and Suppliers Take Stock of Economic Downturn is based on the results of two surveys and a series of one-on-one interviews conducted by Forbes Insights in July and August 2009.

The first survey questioned 110 executives and financial decision makers at middle market retailers. All companies had revenues of $25 million to $1 billion. Respondents represented a broad range of retail segments, including specialty apparel, consumer electronics, appliances, sporting goods, convenience stores, housewares, and discount chains. All respondents held senior-level titles (including CEO, COO, CFO, and VP) and had functional responsibility for finance, strategy and business development, or general management.

The second survey queried 104 executives and financial decision makers at suppliers to the middle market retailer sector. All companies had revenues of $2 million to $1 billion; slightly under half weighed in at less than $50 million. These suppliers represented a broad range of market segments, including apparel and accessories, consumer electronics, housewares, footwear, home furnishings, and other retail. All respondents held senior-level titles (including CEO, COO, CFO, and VP) and/or held functional responsibility for a business unit or department. Over half were either a CEO or owner. The interviewees were not clients of CIT.

About CIT

CIT (NYSE:CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual, and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com

About Forbes Insights

Forbes Insights is the custom research practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights’ research covers a wide range of vital business issues, including talent management, corporate social responsibility, financial benchmarking, risk and regulation, and doing business in emerging markets. www.forbes.com/forbesinsights

Contacts

CIT MEDIA RELATIONS:
C. Curtis Ritter, 212-461-7711
Vice President
Director of External Communications & Media Relations
curt.ritter@cit.com
or
CIT INVESTOR RELATIONS:
Ken Brause, 212-771-9650
Executive Vice President
Ken.Brause@cit.com



http://www.cit.com/media-room/press-releases/index.htm
CIT Group, Inc. (CIT) Won't Comment On Share Spike







More News related to Insiders' Blog
September 22, 2009 12:50 PM EDT

Shares of CIT Group (NYSE: CIT) have spiked 17% mid-day today on surging volume on rumors the beaten-up small and middle-market lender could be getting some type of government funding.

A CIT spokesperson would not comment on today's unusual market activity.

Bloomberg noted that CIT's bonds rose as an Oct. 1 deadline for a restructuring that's acceptable to a group of lenders approaches.
Wirtschaftliche Einschätzung v. CIT über d. Mittelstand

23.09.2009 14:44
Retailers Take Stock of Economic Downturn Featured on CIT’s “5 Minute Capital” Podcast Series

CIT Group Inc. (NYSE:CIT), a leading provider of financing to small businesses and middle market companies, today released another edition of ”5 Minute Capital” (www.5minutecapital.com), its award-winning series of 5-minute podcasts featuring senior CIT executives commenting on current market conditions and trends in the middle market.

Burt Feinberg, Group Head of CIT Retail Finance, provides his perspective on the new study, ”U.S. Small and Middle Market Outlook 2009: Retailers and Suppliers Take Stock of Economic Downturn,” which was recently released by CIT and Forbes Insights. In this installment, he provides his perspective on how retailers are responding to the recession and planning for the recovery.

He comments, ”Retailers are keeping their inventories low. A lot of retailers have stopped or temporarily stopped some growth plans. They’re focused on operations, using technology to track their inventories and creating less SKU’s. They are really trying to streamline their businesses to maintain good levels of cash flow during this recessionary environment.”

In discussing some of the upside retailers have encountered as a result of the current market, Feinberg adds, ”This has been a great opportunity for retailers to go back to their landlords. Because of all the bankruptcies of retailers there is a lot of vacant space. There are leases that relate to whether anchor tenants exist in malls and similar types of provisions that enable retailers to renegotiate leases. As a result, real estate has been an area where retailers can achieve some cost reductions in this recession."

Middle market companies, a key component of the U.S. economy, account for more than $6 trillion in sales and employ almost 32 million Americans. U.S. small businesses employ nearly 59 million Americans (approximately half of all private-sector jobs), constitute approximately 97% of all identified exporters, and produce approximately 29% of the known export value.

EDITOR’S NOTE: Complimentary copies of the report are available for download at http://middlemarket.cit.com.

Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.

About the Report

The information in the U.S. Small and Middle Market Outlook 2009: Retailers and Suppliers Take Stock of Economic Downturn is based on the results of two surveys and a series of one-on-one interviews conducted by Forbes Insights in July and August 2009.

The first survey questioned 110 executives and financial decision makers at middle market retailers. All companies had revenues of $25 million to $1 billion. Respondents represented a broad range of retail segments, including specialty apparel, consumer electronics, appliances, sporting goods, convenience stores, housewares, and discount chains. All respondents held senior-level titles (including CEO, COO, CFO, and VP) and had functional responsibility for finance, strategy and business development, or general management.

The second survey queried 104 executives and financial decision makers at suppliers to the middle market retailer sector. All companies had revenues of $2 million to $1 billion; slightly under half weighed in at less than $50 million. These suppliers represented a broad range of market segments, including apparel and accessories, consumer electronics, housewares, footwear, home furnishings, and other retail. All respondents held senior-level titles (including CEO, COO, CFO, and VP) and/or held functional responsibility for a business unit or department. Over half were either a CEO or owner. The interviewees were not clients of CIT.

About CIT

CIT (NYSE:CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual, and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com

About Forbes Insights

Forbes Insights is the custom research practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights’ research covers a wide range of vital business issues, including talent management, corporate social responsibility, financial benchmarking, risk and regulation, and doing business in emerging markets. www.forbes.com/forbesinsights

Contacts:

CIT MEDIA RELATIONS:
C. Curtis Ritter
Vice President
Director of External Communications&Media Relations
212-461-7711
curt.ritter@cit.com
or
CIT INVESTOR RELATIONS:
Ken Brause
Executive Vice President
212-771-9650
Ken.Brause@cit.com


September 23, 2009 11:01 AM Eastern Daylight Time

Schaeffer's Daily Option Blog: Put Trading Picks Up on CIT Group (CIT)

CINCINNATI--(BUSINESS WIRE)--Options trading was brisk on CIT Group (NYSE: CIT) on Tuesday, as more than 106,000 contracts changed hands. This surge in volume was more than four times the stock's average daily trading volume of 22,680 contracts, according to data from WhatsTrading.com. In addition, roughly 68% of the volume changed hands on the call side.

The October 1 put added roughly 9,000 new positions, pushing its open interest up to 69,433 contracts. The contract saw several large blocks totaling 5,345 contracts cross the tape at an ask price of $0.10. Meanwhile, the October 2.50 call added roughly 5,000 new positions, lifting its open interest up to 80,146 contracts.
Antwort auf Beitrag Nr.: 38.029.411 von Aktientitan am 22.09.09 13:04:12Hallo aktientitan,

was hat es zu bedeuten, wenn eine Aktie plötzlich an der Börse ,
Xetra und Frankfurt, ausgesetzt wird. Wie lange dauert das ? und wieso pasiert sowas?
nochmal für alle die immer fragen: "Wann gibts news?"

13.08.2009 18:24
UPDATE 2-CIT to submit capital plan to NY Fed
NEW YORK, Aug 13 (Reuters) - Troubled lender CIT Group Inc on Thursday said it agreed to provide a capital and liquidity management plan to its regulator within 15 days, sending its shares up by as much as 19 percent.

CIT, which is trying to restructure and avoid bankruptcy, agreed on Wednesday to submit a plan to the Federal Reserve Bank of New York outlining how it will maintain sufficient capital at its Utah-based bank and the bank holding company.

The 101-year-old lender to small and medium-sized companies also promised to provide the regulator with a plan to improve management of its liquidity position within 15 days, according to details in the Federal Reserve enforcement notice.

The company will provide a credit risk management plan and review its system of setting aside allowances for loan and lease losses within 60 days, according to New York Fed.

Within 75 days, CIT also must submit a business plan to improve its financial condition and outline actions to strengthen its management and corporate governance.

Separately, New York-based CIT said its board of directors has adopted a tax plan to protect CIT's ability to use its net operating losses and other tax assets.

The Tax Benefits Preservation Plan will discourage people or groups from becoming 5 percent shareholders, something that CIT said could reduce the value of the tax assets.

CIT last month secured $3 billion in emergency funding from bondholders and it is in the process of a tender offer for $1 billion of notes due Aug. 17.

The lender has suffered amid the global recession from mounting loan losses, after it expanded its traditional business and made an ill-timed foray into sub-prime mortgages.

Shares in CIT were up about 15 percent at $1.47 in morning trading on the New York Stock Exchange after trading as high as $1.50. CIT shares have fallen more than 65 percent since the start of the year.

(Reporting by Elinor Comlay, editing by Gerald E. McCormick and Robert MacMillan)

((elinor.comlay@thomsonreuters.com; +1 646 223 6116)) Keywords: CIT/FED

(Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)


COPYRIGHT
Antwort auf Beitrag Nr.: 38.043.227 von OliverFFM am 23.09.09 20:28:24Poste bitte nur Fakten- im Fakten-Thread !!!

Ich möchte nicht, d. dieser auch wieder mit Schwachsinn aller: ichwilleureknete, vane11770 zugemüllt wird !

Bei nächsten Verstoss, MELDUNG beim MOD !!!


P.S.: Die Q-Zahlen kommen am 22. Oktober 09 soweit mir bekannt !
CIT Putting Debt Woes Behind It?
By Dan Freed 09/24/09 - 12:37 PM EDT
Stock quotes in this article: CIT , AIG , FNM , FRE
Leave a Comment

NEW YORK (TheStreet)--CIT Group (CIT Quote) shares are poised to benefit if indications are accurate that the company is nearing a positive development in its negotiations with creditors, according to a report Thursday from Tradition Asiel Securities.
CIT has until October 1 to put together a restructuring plan with a group of creditors, and its bonds have been rallying in recent days. The price of insuring against a CIT default has fallen of late, reflected in the narrowing of related credit default swap (CDS) spreads.

"We find it hard to believe that CDS spreads would've narrowed as aggressively if a solution to the debt issues isn't imminent," writes Gary Kelly, analyst at Tradition Asiel, a research firm that looks for arbitrage opportunities between the equity and credit default swap markets.

A CIT spokesman declined to comment.

Kelly's report argues a positive resolution in the debt negotiations will trigger a rise in CIT's stock either due to a short squeeze or an improvement in overall sentiment about the company.

CIT has been in the headlines ever since it became clear in July that the company was effectively shut out of the capital markets and would not be able to convince regulators to guarantee its debt, as the U.S. government had done for large banks like Bank of America (BAC Quote) and Wells Fargo (WFC Quote), as well as for giant lender General Electric (GE Quote).

The lender staved off bankruptcy with an emergency loan from a group of hedge funds and giant bond manager PIMCO, and by convincing bondholders to take less than they were owed on a subsequent debt exchange.

http://www.thestreet.com/story/10603007/1/cit-putting-debt-w…
CIT shares benefit from credit rally

* CIT struggling to come up with terms for debt exchange

* Loan managers hedging CIT risk with credit derivatives

* As credit rallies, these managers are buying shares

By Dan Wilchins

NEW YORK, Sept 25 (Reuters) - CIT Group Inc's (CIT.N) shares could be benefiting from the troubles of bank portfolio managers holding the troubled finance company's loans, an analyst wrote.

CIT is struggling to come up with terms for a debt exchange before the end of the month. If unsuccessful, it will have violated the terms of the $3 billion loan it secured in July, potentially bringing the company a step closer to bankruptcy.

But investors in at least a few markets seem a little less concerned about that possibility now. The company's shares have risen 11 percent this week to $1.61 and have traded as high as $1.84 in recent days.

The cost of protecting CIT's debt against default, meanwhile, has plummeted, signaling that investors are less concerned about a bankruptcy filing.

Michael Johnson, chief market strategist at boutique brokerage M.S. Howells & Co in Charlotte, North Carolina, said movement in these two markets may be more closely related than many investors realize.

Many bank portfolio managers have used credit derivatives to reduce their exposure to CIT. Those credit derivatives are worth much less than they used to be after this week's rally, meaning bank portfolio managers are sitting on a loss from their hedge, Johnson wrote in a report issued Wednesday.

The portfolio managers could sell their credit derivatives to reduce that risk, but some banks are reluctant to do so because they still want protection against a CIT default, Johnson said. That's where buying shares comes in: owning equity can effectively be a hedge on the hedge, Johnson said.

If CIT successfully exchanges its debt and recapitalizes itself, credit derivatives will be worth much less, but shares will be worth much more.

More of this sort of hedging is likely to take place in other credits in the future, Johnson wrote. (Editing by Steve Orlofsky)

http://www.reuters.com/article/rbssFinancialServicesAndRealE…
September 29th, 2009 by VinaTrading

The last bank left standing for small businesses


The landscape of lenders willing to work with small business owners has changed dramatically in the last year, but one bank — Wells Fargo — has emerged stronger than ever.

While other financiers that were historically major players took a knee, Wells Fargo (WFC, Fortune 500) increased its lending, emerging as the new number-one lender through the Small Business Administration’s loan programs.

CIT Group (CIT, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Banco Popular of North America and others that once held top spots have cut their SBA lending by more than 70% this year. Meanwhile, Wells Fargo upped its loan volume 4%, from $583.4 million in 2008 to $605 million this year.

Some of that gain may be fueled by Wells Fargo’s late-2008 acquisition of Wachovia, another bank that traditionally made many SBA-backed small business loans. The acquisition closed three months into the 2009 fiscal year (which the SBA began Oct. 1), leading Wachovia and Wells Fargo to report their loans separately through part of the year.

Taken together, the two banks lent $742.3 million this year — down 24% from what they collectively lent as independent banks last year, but still far more than any other bank put into the small business market. The next runner-up, U.S. Bank (USB, Fortune 500), made $249.5 million in loans through the SBA’s flagship lending program.

Given the retraction of a number of key lenders, Wells Fargo’s leap to the top is not a major surprise. “I don’t see anything shocking with Wells Fargo being number one,” says Bob Coleman, editor of the Coleman Report, which monitors small business lending trends.

What Wells Fargo did right: Wells Fargo’s ascendance isn’t solely due to its competition’s collapse. The bank made two key strategic decisions that turned into major advantages.

First, Wells Fargo doesn’t resell its loans on the secondary market, where many banks unload bundles of the SBA-backed loans that they’ve made. That market froze last fall after Lehman Brothers’ collapse, leaving many banks unable to find buyers for their loans — and without those sales, the banks lacked the capital to make new small business loans.

Second, Wells Fargo focuses on making traditional 7(a) loans, which can total as much as $2 million each. The Small Business Administration guarantees a portion of its 7(a) loans — if the business owner defaults, the government pays the bank back for the insured portion.

But the SBA also offers a variety of “Express” loan programs, which involve lower loan amounts, lower government guarantees, and less paperwork. Because banks scrutinize those loans less, they’re more prone to go bad when the economy gets rough.

Bank of America (BAC, Fortune 500), in particular, has been hit hard on that front. The bank made 3,296 SBA loans last year, making it the fourth most-active SBA lender based on the number of loans made. But most of those loans were Express loans, with an average loan size of just over $31,000 each.

And many have begun defaulting. A year ago, CEO Ken Lewis called his bank’s small business loan portfolio a “damn disaster.” Bank of America reacted by sharply pulling back on its SBA lending. So far this year, the bank has made just 303 loans, 269 of which were Express loans.

“Wells Fargo is more of a traditional 7(a) lender. Their loans are larger and there is collateral behind them,” says industry observer Coleman. “They do a more extensive underwriting analysis than the SBA Express lenders, which makes them feel more comfortable in assuming risk. For some lenders, the model is broken for those smaller Express markets, and so they have backed out of the market.”

The new lending scene: Tom Burke, Wells Fargo’s senior vice president of SBA lending, sees his bank’s new leading role on the lending scene as a validation of what it has been doing all along. While Wells Fargo never before held the number-one spot, it has routinely been in the top two or three.

“We have been consistent. Our portfolio performs consistently,” Burke says. “We always said that we are a player in the market. It is part of our DNA to help our small business customers.”

Wells Fargo plans to press its advantage. “We are increasing staff to take advantage of gaps in the marketplace,” Burke says. “We saw weakness in our competitors, and we decided to take advantage of what was going on in the marketplace.”

One new small business owner is grateful that Wells Fargo is still actively lending. Jennifer Braun obtained an SBA loan from Wells Fargo in June to purchase a five-year old event-planning business called Festivities. Located in Medina, Minn., just outside of Minneapolis, the small business has seven fulltime staffers and a handful of part-timers who work weekends to cover events.

Previously employed at an event-planning firm, Braun knew it was risky to change careers in a recession: “All along, I kept thinking this is the worst time to quit my high-paying corporate job, as the primary breadwinner in our house.”

But her doubts didn’t stop her from following her instincts. “I just kept having the gut [feeling] that this was the time to act,” she says. “You see a trend in downturns that a lot of companies are looking for mergers or consolidations, and that just seemed like something that I needed to capture — to get a great business at a great price, because everyone is so scared, they are not moving forward on it.”

Braun started her research by Googling “How do I get a business loan?” and ended up being directed to Wells Fargo by a broker. Both Braun and her husband quit their jobs and currently devote all of their energy to growing Festivities. She’s optimistic that the economy is on the rebound: “I have had a strong belief in next year,” she says.

Without the loan from Wells Fargo, Braun wouldn’t have been able to take the entrepreneurial leap. “I would still be working at my corporate job,” she says. “It would have been a dead dream for now.”

The future: Next week, the government wraps up its 2009 fiscal year, and the SBA numbers are likely to be grim. To try to revive the market, Congress allocated funds in February’s Recovery Act to temporarily eliminate fees for SBA loans and increase to up to 90% the percentage of the loan that is insured against default.

Those moves have had some effect: “If you look in terms of all the government programs that are out there — increasing that 7(a) guarantee to the bank has made the greatest impact to getting money to Main Street, in my opinion,” says Coleman.

“This is a good time to be making SBA loans,” Wells Fargo’s Burke says of the added incentives.

Even with the stimulus cash, the number of 7(a) loans made this year is on track to drop 38% from last year, to just over 40,000 loans. The total amount lent is also down sharply: Though mid-September, loans totaled $8.7 billion, down 28% from the same time last year.

But Wells Fargo, at least, expects its coffers to remain open to small business borrowers.

“We are in it for the long term,” Burke says. “We would love to continue to be the top SBA performer.”


http://www.signalblog.com/2009/09/the-last-bank-left-standin…
market pulse

Sept. 29, 2009, 6:37 a.m. EDT ·
Creditors eye CIT, IndyMac merger: report

By Steve Goldstein

LONDON (MarketWatch) -- John Paulson, the hedge fund manager who made successful bets during the credit crunch, is tossing about a plan to save troubled lender CIT Group /quotes/comstock/13*!cit/quotes/nls/cit (CIT 1.67, +0.06, +3.73%) through a merger with IndyMac Federal Bank, The New York Post reported, citing people familiar with the situation. These sources emphasized that such a merger has not been part of any formal discussions between CIT and IndyMac, but is a plan that some creditors, including Paulson and his hedge-fund firm, Paulson & Co., have floated, the report said. CIT's bondholders are set to meet Thursday about a restructuring plan, the newspaper added.


http://www.marketwatch.com/story/creditor-eye-cit-indymac-me…
CIT 2.20 +0.53 +31.74% Volume: 358,234,703



Paulson or No Paulson Speculators Are Loving CIT (CIT)

Today
Reports CIT Group (CIT) In Talks On New $10B Credit Facility
Reports Paulson's CIT/IndyMac Hook-Up Rumors are "Pure Nonsense"
StreetInsider's Best of Web 9/29
Hedge Fund Guru Paulson Considering Plan to Save CIT Group (CIT)

With so many moving parts it seems no one is quite sure what is going on with CIT Group, Inc. (NYSE: CIT). That being said, investors are still excited that something is about to happen and are bidding shares of the embattled lender higher anyway.

This morning, reports surfaced from the New York Post that hedge-fund powerhouse John Paulson is considering a plan to save the troubled lender through a merger with the leftovers of failed IndyMac Federal Bank. Cold water was later poured on this story from a number of sources, with one calling it "pure nonsense." according to Clusterstock.com.

After losing steam on the purported denial, shares of CIT picked back up on reports from Reuters the company is talks on a new $10 billion credit facility, which could help pay off maturing debt and stave off bankruptcy.

So while we don't no the details, and it is unclear even under the rosiest of scenarios if the common shares will have value, they are bidding the stock up anyway. Why not? Just look at AIG (NYSE: AIG). All fundamentals signs point to zero value for the common of AIG, but because it is a trading vehicle the stock goes higher anyway.

Shares of CIT closed up about 30%.

http://www.streetinsider.com/premium_content.php


CIT Nears a Restructuring Plan



Heißt: CIT nähert sich einen Umstrukturierungsplan




September 29, 2009, 10:31 pm
CIT Group

The CIT Group, the troubled lender, is in talks with its creditors over a restructuring plan that would significantly pare down its debt load, people briefed on the talks told DealBook Tuesday night.

Under the current contours of the talks — which are ongoing, these people cautioned — CIT would cut its debt by more than 30 percent through exchange offers that would give it new debt with later maturity dates and would give its bondholders a significant portion of its equity.

Because talks are ongoing, it is possible that CIT would still be forced to seek Chapter 11 protection. The company has until Thursday to present a restructuring plan to its creditors, including major bondholders who helped the company stave off bankruptcy this summer by providing $3 billion in bridge financing.

CIT hopes to firm up its restructuring plan to be presented by Thursday and remains in talks with major creditors, these people said. The firm, which was rechristened a bank holding company during the financial crisis last year, has also kept federal regulators apprised of the talks.

A spokesman for CIT declined to comment to DealBook.

The talks follow months of effort by CIT to right itself after nearly going under earlier this year. The company, one of the largest lenders to small- to mid-sized business across the country, found itself increasingly unable to finance its operations through the short-term debt markets during the financial crisis last fall.

If it cannot reach an agreement with its creditors, CIT, with $75 billion in assets, could be the biggest failure of a financial institution since the collapse of Lehman Brothers last fall. Since then, federal regulators have been pumping billions of dollars into numerous banks across the country to prop them up and create some stability in the nation’s financial system.

Among the many unknowns in a CIT restructuring is what will happen to the $2.3 billion that the firm received from the federal government as part of the $700 billion financial rescue package. Because the investment from the government came in the form of preferred stock, it would be considered junior to secured debt in a bankruptcy filing, meaning that it would be paid back after debt backed by company collateral.

Shares in CIT have jumped in recent days over speculation that the firm was close to a refinancing agreement or was considering a merger with other institutions like the bank once known as IndyMac. One of the people briefed on the matter dismissed the latter option, while acknowledging that the company may sell assets as a part of its restructuring down the road.

– Michael J. de la Merced


http://dealbook.blogs.nytimes.com/2009/09/29/cit-nears-a-res…
US-BUSINESS Summary
Reuters
Wednesday, September 30, 2009; 3:02 AM

Asian shares rise to second straight quarterly gain

HONG KONG (Reuters) - Asian shares edged higher on Wednesday looking past a surprise fall in U.S. consumer confidence and the Australian dollar jumped to a 13-month high after August retail sales data beat forecasts. European stock futures pointed to a slight rise in opening trade on the last day of a quarter seen registering the strongest gain in nearly a decade, while U.S. equity futures were up about 0.2 percent.

CIT near plan to turn over company to bondholders: sources

NEW YORK (Reuters) - CIT Group Inc <CIT.N> is nearing a plan that likely would hand the commercial lender over to its bondholders, sources familiar with the matter said on Tuesday. CIT was preparing an exchange offer that would eliminate up to 40 percent of its more than $30 billion in outstanding debt, said the sources, who did not wish to be identified because they were not authorized to make public comments about the deal.
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IMF cuts global debt writedown estimate to $3.4 trillion

ISTANBUL (Reuters) - The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to $3.4 trillion but warned that loan losses were set to rise as unemployment grew. In April the IMF estimated in its Global Financial Stability Report that global bank losses could reach $4 trillion but said it cut the figure by $600 billion to reflect rising securities values and new methodology for calculating writedowns.

Toyota plans huge U.S. recall for dangerous floormats

DETROIT/WASHINGTON (Reuters) - Toyota Motor Corp <7203.T> said it will recall some 3.8 million vehicles in the United States because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that have killed five people. The recall includes the hot-selling Prius hybrid and would be the largest ever for Toyota, which has built a reputation for safety and quality that helped it surpass General Motors <GM.UL> as the world's top automaker last year.

FDIC wants banks to prepay fees to meet failure bill

WASHINGTON (Reuters) - U.S. banking regulators proposed on Tuesday that banks prepay three years of fees to help cover the rising cost of bank failures, now put at $100 billion through 2013. Banks would prepay $45 billion of regular quarterly assessments under the plan, but would not have to recognize the hit to their earnings until the fees are normally due.

IMF to raise world economic growth forecast: paper

SINGAPORE (Reuters) - The International Monetary Fund will raise its 2010 growth forecast for the world economy to 3.1 percent from 2.5 percent to reflect improving economic conditions, a newspaper reported on Wednesday. Citing unidentified sources at the IMF and the German government, German business daily Handelsblatt said the IMF had revised its global forecast for this year to a 1.1 percent contraction from a negative 1.4 percent before.

http://www.washingtonpost.com/wp-dyn/content/article/2009/09…
CIT Said to Consider Loan Financing From Citigroup, Barclays


By Pierre Paulden and Kristen Haunss

Sept. 30 (Bloomberg) -- Citigroup Inc. and Barclays Capital are offering to provide financing to CIT Group Inc., the commercial lender that’s struggling to avert bankruptcy, according to people familiar with the situation.

The 101-year-old company’s bondholders are also seeking to provide about $2 billion in loans as a restructuring deadline approaches tomorrow, said the people, who declined to be identified because the negotiations are private. New York-based CIT may choose other options, the people said.

CIT said in July it may seek court protection from creditors after Chief Executive Officer Jeffrey Peek failed to win a second government bailout and had to turn to bondholders for $3 billion in rescue financing. The company said in an Aug. 17 regulatory filing that it has to come up with a plan “acceptable” to the majority of a bondholder steering committee that provided it with the emergency cash by Oct. 1.

“Some sort of secured financing is a likely component of the company’s restructuring plan, launched in conjunction with a debt exchange,” Brian Charles, a debt analyst at brokerage firm RW Pressprich & Co. in New York, said in a telephone interview. CIT needs to raise $5 billion to $6 billion in financing to be able to make loans, he said.

Bonds Rally

CIT’s $750 million of 4.25 percent notes due in February climbed 2.5 cents yesterday to 77 cents on the dollar, and have gained 14 cents since the end of August, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The company’s shares rose 53 cents, or 32 percent, to $2.20 in New York Stock Exchange composite trading.

Citigroup, Barclays Capital and CIT spokesmen in New York declined to comment. About $9.14 billion of CIT loans and bonds mature through 2010, including $1.15 billion of debt securities by the end of this year, data compiled by Bloomberg show.

The restructuring plan for CIT, which had a net loss of $1.62 billion in the second quarter, may include selling business lines or assets, debt-for-equity-swaps and offers to extend debt maturities, CIT said in the Aug. 17 filing.

The company may be able to create $6 billion to $9 billion of capital by exchanging $30 billion of unsecured notes through debt swaps, Charles at Pressprich wrote in a Sept. 9 report.

CIT bonds rose last week on speculation the lender was in talks with Citigroup and Bank of America Corp. to refinance a $3 billion loan with an $8 billion to $10 billion secured-loan facility, New York-based fixed-income research firm CreditSights Inc. said in a Sept. 27 report.

Fed Approval Needed

CreditSights said it couldn’t confirm the validity of the speculation and that the Federal Reserve would need to approve any transaction. Danielle Robinson, a spokeswoman for Charlotte, North Carolina-based Bank of America, declined to comment.

While the financing would get management “out from under the thumb of the steering committee,” the extra debt doesn’t reduce the risk of an exchange offer or prepackaged bankruptcy, CreditSights analyst Adam Steer said. “The company is going to need to raise equity to appease the regulators and ultimately re-establish its business,” he said in an interview.

Bank of America and Citigroup arranged CIT’s five-year, $2.1 billion bank line that needs to be repaid in April 2010, according to Bloomberg data. Barclays, the documentation agent for that loan, was the administration agent on CIT’s $3 billion rescue financing in July.

Stock Decline

CIT, whose stock has fallen 52 percent this year through yesterday, turned to its bondholders after failing to gain access to the Federal Deposit Insurance Corp.’s program to guarantee debt sales.

Newport Beach, California-based Pacific Investment Management Co., Centerbridge Partners LP in New York, Los Angeles-based Oaktree Capital Management LLC, Boston-based hedge fund Baupost Group LLC, Capital Research & Management Co. of Los Angeles, and Silver Point Capital LP in Greenwich, Connecticut, made up the group that initially provided the $3 billion in emergency funding and are part of the steering committee.

Under terms of the rescue loan, CIT had to complete a tender offer to exchange $1 billion of floating-rate notes that matured in August. Holders of 59.8 percent of the notes tendered the debt after CIT raised its offer 5 cents to 87.5 cents on the dollar. Bondholders that provided the rescue financing agreed to tender their holdings.

To contact the reporters on this story: Pierre Paulden in New York at ppaulden@bloomberg.net; Kristen Haunss in New York at khaunss@bloomberg.net.

Last Updated: September 30, 2009 00:31 EDT
Falls heute der Chicago-Einkaufsmanagerindex positiv, gibt es auch am Gesamtmarkt eine Party, wenn für CIT dann noch eine Finanzierungslösung absehbar ...

Termine: Heißer Tag im Anmarsch

Am heutigen Mittwoch steht in den USA die Veröffentlichung der endgültigen BIP-Zahlen für Q2 2009 (14.30 Uhr MESZ) an. Laut einer von der Nachrichtenagentur Bloomberg veröffentlichten Umfrage rechnen die befragten Analysten im Durchschnitt mit einem Minus von 1,2 Prozent. Vom Chicago-Einkaufsmanagerindex erhoffen sich die Börsianer gegen 15.45 Uhr dann das Überwinden der 50-Punkte-Schallmauer. Sollte dies gelingen, würden die konjunkturellen Ampeln von Rezession auf Expansion umschalten.


WichtigeTermine:

USA:
MBA-Hypothekenanträge (13.00 Uhr MESZ)
ADP-Arbeitsmarktbericht im September (14.15 Uhr MESZ)
BIP in Q2 2009 (14.30 Uhr MESZ)
Unternehmensgewinne in Q2 2009 (14.30 Uhr MESZ)
Chicago-Einkaufsmanagerindex im September (15.45 Uhr MESZ)
EIA-Ölmarktbericht (16.30 Uhr MESZ)
30.09.2009 11:56
CIT könnte wegen erneuter Pleitegefahr Unterstützung erhalten

New York (BoerseGo.de) - Um einen drohenden Bankrott des schwer angeschlagenen Kreditgebers CIT abzuwenden haben die Citigroup und Barclays Capital Finanzhilfen angeboten. Dies berichtete Bloomberg unter Berufung auf vertraute Kreise. Hinsichtlich der 101 Jahre alten New Yorker Traditions-Bank würden Anleihegläubiger im Zuge des morgigen Auslaufens einer gesetzten Restrukturierungsfrist Ausschau nach Gewährung von rund 2 Milliarden Dollar schweren Krediten halten. Es bleibe unbekannt, ob sich die damit verbundenen Verhandlungen nur auf privater Natur erstrecken. CIT dürfte jedoch noch andere Optionen in Erwägung ziehen.

CIT hat vergangenen Juli eine Anmeldung für Gläubigerschutz angedroht. Für diese gefahrenvolle Lage zeigte sich das Unterlassen einer zweiten Rettungsaktion durch die Regierung verantwortlich. Den Bankrott wendete letztendlich eine 3 Milliarden Dollar schwere Finanzierung durch Anleihegläubiger ab. Am 17. August erklärte der bedeutende Finanzierer für mittlere und kleine Unternehmen, dass knapp 60 Prozent der Inhaber einer fällig gewordenen Anleihe ein entsprechendes Angebot im Volumen von einer Milliarde Dollar angenommen haben, wodurch ein Überleben vorerst gesichert worden ist.

http://www.finanznachrichten.de/nachrichten-2009-09/15083118…
In Restructuring Effort, CIT Offers a Debt Exchange



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By MICHAEL J. de la MERCED
Published: October 2, 2009



The CIT Group formally unveiled its restructuring plan late Thursday, giving its bondholders the choice of either a series of exchange offers or a potential prepackaged bankruptcy filing.
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The plan, which was approved by CIT’s board on Thursday night, is meant to significantly reduce about $30 billion of the troubled lender’s unsecured debt. By simultaneously soliciting votes for a prepackaged bankruptcy alongside the debt exchange offers, the company is hoping to scare enough bondholders into supporting the out-of-court restructuring effort.

CIT, a major lender to small and midsize businesses nationwide, did not release exact terms of the exchange offers, but said that bondholders who tendered their holdings would receive either new bonds backed by company assets or preferred stock. The new debt would also delay CIT’s bond maturity dates, easing pressure on the company.

CIT said the exchange offers will expire on Oct. 29.

People briefed on the matter, who spoke on the condition they not be identified, said existing CIT shareholders would likely be wiped out through the restructuring, with control of the company’s equity being largely handed over to its creditors.

The restructuring plan was developed in consultation with a group of major bondholders who provided CIT with $3 billion in rescue financing this summer. That group, calling itself the steering committee of CIT bondholders, represents about $10 billion of the company’s $30 billion in unsecured debt. It has pledged to support either the exchange offers or the prepackaged bankruptcy plan.

CIT has also sought $4 billion to $6 billion in secured financing for other capital requirements, likely from the steering committee of its bondholders, according to a person briefed on the matter.

Should the company file for bankruptcy, the money could be used for debtor-in-possession financing to sustain the lender through its Chapter 11 case, which CIT expects would last 30 to 45 days, according to people briefed on the matter.

CIT said neither its bank nor its operating units would be part of the bankruptcy filing, technically leaving its day-to-day functions unimpeded. But the company is gambling that it will be one of few financial firms to survive a Chapter 11 proceeding.


http://www.nytimes.com/2009/10/02/business/02cit.html?_r=1
Bahn frei für Umschuldung
CIT-Board versucht Notbremsung






Der krisengeschüttelte US-Mittelstandsfinanzierers CIT hat einen Sanierungsplan vorgelegt, mit dem eine Pleite abgewendet werden soll. Das Board habe den Plan gebilligt, teilte CIT in der Nacht zu Freitag mit.

CIT bemühe sich bei Eignern und Gläubigern um Unterstützung für den Restrukturierungsplan. Nun werde das Angebot einer Umschuldung eingeleitet. Sollte dies nicht gelingen, würde CIT möglicherweise freiwillig Gläubigerschutz nach Chapter 11 beantragen, teilte das Unternehmen mit. Es wäre eines der größten Insolvenzverfahren in der Geschichte der USA.

Der Mittelstandsfinanzierer hatte im August angekündigt, bis zum 1. Oktober einen Sanierungsplan vorzulegen. Im Juli hatte eine Gruppe von Gläubigern den Kreditgeber von Tausenden Einzelhändlern und kleineren Firmen mit einem Notdarlehen über drei Milliarden Dollar vor dem Aus bewahrt.


http://www.n-tv.de/wirtschaft/CIT-Board-versucht-Notbremsung…
10:03:15 Uhr
CIT Group will vermeiden, eine der größten Insolvenzen in der Geschichte der USA hinzulegen

Die Insolvenz droht. Um diese zu vermeiden, meldete der schwer angeschlagene US-amerikanische Finanzdienstleister CIT Group (WKN 663204) gestern, habe man mit einer Restrukturierung der Kapitalstruktur begonnen.

Der bereits vom Board of Directors genehmigte Plan zur Sanierung des Unternehmens enthält nach Berichten auch ein Angebot zur Umschuldung vor. CIT versuche, von Eignern und Gläubigern Unterstützung für die geplante Sanierung einzuholen. Falls dies nicht von Erfolg gekrönt sei, könne man sich entschließen, aus freien Stücken den Antrag auf Gläubigerschutz nach Chapter 11 zu stellen, wurde verlautet. Damit würde eine der größten Insolvenzen in der Geschichte der Vereinigten Staaten drohen.http://www.das-anlegerportal.de/cit-group-will-vermeiden-eine-der-groeten-insolvenzen-in-der-geschichte-der-usa-hinzulegen-n80484.htm
Pleitegeier
CIT will Zusammenbruch abwenden
04. Oktober 2009, 16:39



US-Finanzierer führt Verhandlungen um Unterstützung bei Eignern und Gläubigern

New York - Der krisengeschüttelte US-Mittelstandsfinanzierer CIT will sein drohendes Aus mit einem Umschuldungsplan abwenden. Über ein Tauschangebot sollen mindestens 5,7 Mrd. Dollar (3,9 Mrd. Euro) an Verbindlichkeiten abgebaut werden, wie der Kreditgeber von Tausenden Einzelhändlern und kleineren Firmen mitteilte. Zugleich traf das Institut aber auch Vorkehrungen, um freiwillig Gläubigerschutz nach Chapter 11 beantragen zu können, sollte der Umschuldungsplan scheitern. Es wäre eines der größten Insolvenzverfahren in der Geschichte der USA.

CIT zufolge will sich ein Drittel der Schuldner an dem Tauschangebot beteiligen oder habe signalisiert, den Restrukturierungsplan zu unterstützen. Die Tauschofferte läuft bis zum 29. Oktober.

Schuldenabbau zu wenig

Experten zufolge könnte der anvisierte Schuldenabbau jedoch zu wenig sein. Für ein Unternehmen, das bei einem Eigenkapital von weniger als drei Milliarden Dollar Vermögenswerte von 71 Mrd. Dollar hält, könnte dies zu wenig Zusatz-Kapital sein, hieß es in einem Analystenbericht von CreditSights. Der Schuldenabbau könnte zwar die Aufseher bei der Notenbank Fed beruhigen, er dürfte es CIT aber nicht erlauben, sich auf dem Anleihenmarkt Geld zu beschaffen oder eine Rating-Aufwertung zu bekommen.

Nachteile könnte die Umschuldung auch für die US-Regierung mit sich bringen. Im Dezember erwarb der Staat CIT-Aktien in Höhe von 2,3 Milliarden Dollar über das US-Rettungsprogramm für die Finanzbranche (TARP). Nach der Umschuldung soll er 2,4 Prozent oder rund 386,4 Millionen Aktien erhalten. Derzeit hat dieses Paket einen Wert von etwa 490 Millionen Dollar. Der Verlust würde sich somit auf 1,84 Mrd. Dollar belaufen.

CIT war in der Finanzkrise ins Stolpern geraten, weil es sich im Kreditboom zu viele Hypotheken- und Studentendarlehen aufgeladen und einen Schuldenberg von 40 Milliarden Dollar aufgebaut hatte. Nach ihrem Aktienkauf im Dezember lehnte die Regierung Gesuche um weitere Hilfen ab. Im Juli hatte eine Gruppe von Gläubigern mit einem Notdarlehen über drei Milliarden Dollar CIT zunächst vor dem Aus bewahrt. Im August gelang die Umschuldung einer Mitte des Monats fälligen Anleihe, wodurch die drohende Insolvenz erneut aufgeschoben wurde. Langfristig will sich CIT in eine Bank umwandeln. (APA/Reuters)
CIT Group's debt exchange seems a "perilous gamble", Barron's reports

CIT Group (CIT) shares were up 15c, or 14% on Friday, after the company had drawn up a plan to coax creditors to exchange some of CIT's $31B in debt, raising hopes that CIT will dodge bankruptcy. At this juncture, CIT common stock is essentially a call option on the company getting bondholders to forgive some of its $31B in debt, about $5B of which is coming due this year and which CIT can't pay with its current funds. In fact, shares could become worthless under a couple scenarios. There's risk the bondholders will in fact not agree, given that they face discounts on their holdings of 40% to 50% under the restructuring, according to analysts' estimates. That is below the 80% or so some analysts see bondholders recovering in a bankruptcy scenario. But even if the bondholders go along -- CIT said it has commitments from holders of $10B of its bonds -- there's substantial question as to just how healthy a new CIT would be. The company says it hopes to emerge from restructuring with far less debt and more. According to a note Friday from debt analysts Egan Jones, with a negative 8% operating-profit margin projected for this year, just $4.5B in cash equivalents at the end of the June quarter, and clients drawing down funds, "cash remains pressed." CIT would be better off in the hands of a larger operation that could fund it more capably, the firm believes. JP Morgan (JPM), Wells Fargo (WFC), Warren Buffett's Berkshire Hathaway (BRKA) and PNC Financial Services (PNC) are all prime candidates, the analysts argue.

http://www.theflyonthewall.com/permalinks/entry.php/CIT;WFC;…
Goldman Sachs in talks with CIT Group to potentially amend $3 billion loan, report says

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Mon Oct 5, 7:40 PM

By The Associated Press
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NEW YORK - Goldman Sachs Group Inc. is said to be in discussions with CIT Group Inc. about potentially amending a $3 billion loan to the troubled lender.

Under terms of the loan, CIT would be required to pay Goldman Sachs $1 billion if it were to file for Chapter 11 bankruptcy, The Wall Street Journal reported on its Web site late Monday. CIT is considering different options for the loan, including reducing the $1 billion payment, the report said, citing people familiar with the situation.

A CIT Group spokesman declined to comment on the report. A Goldman Sachs representative was not immediately available.

Devastated by the downturn in the credit markets, CIT has been trying to avoid bankruptcy for months as it restructures its operations.

Late last week, the lender launched a debt restructuring effort in the hope of trimming at least $5.7 billion from its balance sheet. At the same time, the company is seeking approval from its bondholders for a prepackaged reorganization plan in case it is forced to file for bankruptcy protection.

New York-based CIT, one of the nation's largest lenders to small and midsize businesses, received $2.3 billion in federal bailout funds last fall and in July secured a $3 billion emergency loan from some of its largest bondholders, dodging an immediate bankruptcy filing. But the company still needs to reduce its massive debt burden to avoid collapse.
CIT bonds: The discount tells you there are doubts
Updated 12h 44m



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Are CIT bonds any safer now, specially the ones coming due in November 2009?

As a leading provider of loans to small and midsize business, CIT has been a source of financial strength to others for some time. But now, the company finds itself in the unfortunate position of needing help itself.

CIT had been dominant for quite some time by narrowly focusing on what it did best: serving the financial needs of emerging companies. It built a giant business called factoring, for instance, which is providing short-term loans for companies that need money to buy goods to sell. For instance, retailers would borrow from CIT in September to buy merchandise for the holiday season. After the goods were sold, the retailers would repay CIT with interest in January.

But CIT, like many lenders, expanded beyond its area of expertise and got into trouble with products such as real-estate loans. In addition, CIT depended on borrowing money in the open market, which proved too costly when the credit crunch hit. You can read more hereabout CIT's unfolding troubles.

On October 1, CIT took additional steps to preserve itself with a restructuring plan. That involved an offer to swap billions in debt with new debt that matures further in the future. You can read more here about that proposal.

But you're asking about CIT's current bonds. The best way to see how safe the bonds are, at least in the eyes of investors, is to look at the pricing. You can do this by consulting Finra's Trace database for bonds.

And when you check Finra (Financial Industry Regulatory Authority), you'll see the value of CIT bonds is highly relative to the particular issue you own. CIT was a heavy borrower, and investors are treating each issue differently. Because of the uniqueness of each bond, it's difficult to make any generic statement about the value of them as a group.

Based on current data, however, it appears that most of the CIT bonds maturing in November are trading for anywhere between 67 cents and 77 cents on the dollar. These price quotes, however, are extremely volatile and changing hourly. You can check them yourself at any time of the day at the Finra website.

http://www.usatoday.com/money/perfi/columnist/krantz/2009-10…
Übersetzung:

CIT Group Inc., einem Anbieter von Finanzierungen für kleine Unternehmen und mittelständische Unternehmen, am 1. Oktober angekündigt, dass sie begann eine Umstrukturierung der Kapitalstruktur, die vom Vorstand des Unternehmens of Directors zugestimmt hat und durch den Lenkungsausschuss der Anleihegläubiger CIT hat.

CIT, sagte der Ankündigung ist ein wichtiger Schritt in einen Umstrukturierungsplan CIT Hauptstadt Ebenen zu erhöhen, ihre Liquidität und Rendite des Unternehmens in die Gewinnzone.

Nach dem Plan sind, CIT Group Inc. und CIT Group Funding Company of Delaware (Delaware Funding) startet Austausch bietet für bestimmte unbesicherten Verbindlichkeiten. Wenn die Gesellschaft nicht die Ziele des Austauschs zu erreichen, bietet, so kann sie eine freiwillige Anmeldung unter Chapter 11 des US Bankruptcy Code Einleitung
. Daher ist die Gesellschaft gleichzeitig Hereinholen Anleihegläubiger und andere Inhaber von CIT Schuld zu einem vorgefertigten Plan der Reorganisation zu genehmigen. Das Unternehmen wurde von Beratern des Lenkungsausschusses informiert, dass, vorbehaltlich der Überprüfung des Offering Memorandum, rund 10 Milliarden Dollar der ausstehenden unbesicherten Schulden haben bereits mitgeteilt, ihre Absicht, an dem Umtauschangebot oder eine Abstimmung für die Fertigpackungen Reorganisationsplan zu beteiligen.

"In den letzten Monaten hat CIT Management, zusammen mit seinem Board of Directors und externe Berater, einen umfassenden Plan zur CIT für den zukünftigen Erfolg Lage entwickelt", sagte Jeffrey M. Peek, Chairman und CEO. "Wir glauben, dass dieser Plan maximiert Franchise-Wert und können schnell und effektiv ausgeführt durch eine Reihe von freiwilligen Schulden Austausch bietet oder ein In-Gericht Umstrukturierungsprozess beschleunigt. Nach Abschluss der beiden Alternativen, wird CIT eine gut finanzierte Bank-Holding mit einem starke Kapitalbasis und marktführenden Franchise.

"Wir haben die Liquidität in unserem kleinen Unternehmen dienen und mittelständischen Unternehmenskunden während des gesamten Prozesses haben", Peek fortgesetzt. "Im Namen von CIT, möchte ich unseren Kunden für ihre anhaltende Unterstützung während dieses Prozesses danken und auch unsere Mitarbeiter mit ihrem Engagement ist entscheidend für die Zukunft der CIT danken."

Jeff Werbalowsky von Houlihan Lokey, die Finanzberater des Steering Committee, sagte: "Der Ausschuss hat sehr konstruktiv mit dem Unternehmen gearbeitet und hat seinen Plan genehmigt. Durch die Umstrukturierung und erhebliche Entschuldung in diesem Plan, gleich ob abgeschlossen gerichtlich oder außergerichtlich Wir sind sehr zuversichtlich, dass CIT als eine starke Bank-Holding mit neuer Gewinn und Profitabilität Potenzial hervorgehen wird. "

CIT gesagt, dass es eine Reihe von freiwilligen Austausch initiiert hat Angebote entwickelt, um ihre Bilanz sanieren und deutlich seine Schulden zu reduzieren, ein Out-of-Gericht Umstrukturierung. Erfolgreicher Abschluss des Austauschs bietet, wird in erheblichem Umfang Kapital zu generieren und sind multi-Jahr Liquidität durch die wesentliche Reduzierung der ausstehenden Schulden von CIT.

Unter den Bedingungen des Austauschs bietet, eine Ausschreibung Inhaber einer bestehenden Forderung Sicherheit würde eine Pro-rata-Anteil an jedem der fünf Reihe von neu ausgegebenen Secured Notes zu erhalten, mit Laufzeiten zwischen vier bis acht Jahre, und / oder Aktien der neu ausgegebenen Stimmrechte Vorzugsaktien. Angebotene Gegenleistung in Höhe variiert, und geben Sie auf Emittenten, die Reife und die Position in der Hauptstadt Struktur.

Der Austausch Angebote sind auf die Erreichung akzeptable Liquidität und nutzen bedingt. Diese Bedingungen verlangen, dass der Austausch bietet nicht vollzogen, wenn der Nennwert der gesamten Schulden des Unternehmens, die nicht von mindestens 5,7 Milliarden Dollar in insgesamt reduziert, mit spezifischen Schuldenabbau werden
Ziele für die Zeiträume 2009 bis 2012, als mehr in vollem Umfang für das Offering Memorandum beschrieben.

CIT ist auch Hereinholen meisten Anleihegläubiger und andere Inhaber von CIT Schuld zu einem vorgefertigten Plan der Reorganisation zu genehmigen, dass das Unternehmen die Möglichkeit, mit einem freiwilligen Konkurs-Anmeldung gehen hat. Das Unternehmen ist überzeugt, dass eine solche Insolvenzverfahren könnte zügig mit minimaler Unterbrechung seiner Tätigkeit beschlossen. In diesem Prozess würde, CIT CIT Bank und die operativen Einheiten nicht Konkurs anmelden, die das Unternehmen ermöglichen wird, weiterhin seine Kunden zu bedienen.
UPDATE 2-CIT eyes debt exchange or prepack bankruptcy-sources
Published: 09 Oct 2009 21:00:09 PST

* Plans exchange offer for $32 bln unsecured debt-sources

* Eyes pre-packaged bankruptcy if not successful-sources

* Board yet to approve plan but regularly briefed-sources

* Shares down 88 cents to $1.32, debt also drops (Adds new information, rewrites throughout, updates share price, adds byline)

NEW YORK, Sept 30 - CIT Group Inc plans to offer its unsecured debtholders two options: either exchange their debt voluntarily or face a pre-packaged bankruptcy, sources close to the situation said on Wednesday.

The debt exchange would allow the finance company's bondholders to swap their securities for new debt or equity, said the sources, who declined to be identified because the plan is not public.

Shares of CIT fell 40 percent Wednesday on fears that however the company rights itself, be it with a debt exchange or bankruptcy, equity holders will get little. The company's debt prices fell, too, and the cost of protecting its debt against default rose.

CIT has about $32 billion of unsecured debt on its balance sheet, and hopes to reduce its debt and put off repaying some obligations that are coming due soon, the sources said.

Late on Tuesday, another source told Reuters that the plan would offer bondholders new debt secured by CIT assets, as well as nearly all of the equity in a restructured company.

Because exchange offers can be hard, CIT also plans to seek votes to restructure in a pre-packaged bankruptcy, the sources said on Wednesday.

A pre-packaged bankruptcy could be done in 30 to 60 days, the sources said. Such bankruptcies typically require the approval of about two-thirds of debtholders; debt exchanges often require 90 percent of holders to participate.

Any asset sales would be considered only after this restructuring, the sources said.

Few financial companies have survived bankruptcy, but CIT believes its customers will continue to borrow from it even if it is reorganizing in bankruptcy court, the sources said.

CIT still hopes to move toward a bank-centered model, and is in talks with regulators, sources said.

CIT's board has yet to sign off on the plan, but the board is briefed frequently and knows what management has been working on, the sources said.

Although CIT received $2.3 billion in December under the Troubled Asset Relief Program (TARP), federal regulators this year declined further requests by CIT for funds. Regulators have also said the company's bank unit cannot collect new deposits.

In July, CIT bought some time to restructure with the help of an emergency loan from a group of bondholders. Bond giant PIMCO, Centerbridge Partners LP, Oaktree Capital Management, Baupost Group, Capital Research & Management Co and Silver Point Capital were part of a group that provided a $3 billion loan.

Under the terms of that loan, CIT must come up with a restructuring plan agreeable to lenders by Oct. 1. That plan will likely include debt exchange offers, the company said in a regulatory filing in August.

"I could also see a scenario in which the company completes a debt exchange and essentially sells off its assets over time," said Brian Charles, debt analyst at fixed income broker-dealer R.W. Pressprich & Co.

"The long-term outlook for the company, I guess that is still cloudy because I am not sure to what extent would they be able to shift everything over to their bank subsidiary," Charles said.

CIT's notes maturing next year with a 4.75 percent coupon fell 2.5 cents on the dollar to 69 cents, according to MarketAxess data.

Debt protection costs for CIT rose on concerns about the company's restructuring. CIT's five-year credit default swaps rose to an upfront payment of 36.2 percent of the sum insured plus 500 basis points a year, up from 34 percent, according to CMA DataVision. That means it would cost $3.62 million to insure $10 million of debt plus $500,000 a year.

CIT shares fell 88 cents to $1.32 in afternoon trading.



http://news.alibaba.com/article/detail/markets/100181311-1-u…
News - 19.10.09 16:31

Taumelnde US-Mittelstandsbank: Managerschreck Icahn bietet CIT Milliardenkredit an

Mit 6 Mrd.$ will der Investor dem Unternehmen unter die Arme greifen. Doch die Offerte ist giftig: Carl Icahn überzieht die CIT-Führung mit Hohn und Kritik. Ihre Pläne für eine Umschuldung seien "schamlos" und "inkompetent".

Der Investor und Firmenjäger Carl Icahn hat sich das Gezerre um den von der Pleite bedrohten US-Mittelstandsfinanzierer CIT Group eingeschaltet. Icahn teilte am Montag mit, er habe der Führung der Bank einen 6 Mrd. $ schweren Kredit angeboten. So wolle er verhindern, dass CIT Anleihegläubigern "schamlos" besicherte Verbindlichkeiten "deutlich unter dem fairen Marktpreis" verkaufe, um die selbe Summe zu erlangen. Die CIT-Aktie schoss im frühen Handel um 18 Prozent in die Höhe.

Das Traditionsunternehmen will sich mit einer Umschuldung vor dem Zusammenbruch retten und hat den - bislang meist unwilligen Geldgebern - verbesserte Konditionen angeboten. Der Fall hat Aufsehen erregt, weil die Bank ein wichtiger Geldgeber für rund eine Million kleine und mittelständische Unternehmen ist - die durch einen Kollaps ebenfalls in Gefahr geraten könnten.

Icahn tritt immer wieder als aktivistischer Investor auf und macht mit spektakulären Aktionen von sich reden. Vor einigen Jahren griff der Milliardär etwa den Medienkonzen Time Warner an, in den 1980er-Jahren brachte er die Fluggesellschaft TWA unter seine Kontrolle.

In seiner Erklärung attackiert Icahn das Top-Management des 101 Jahre alten Unternehmens scharf. Die Vorschläge der CIT-Führung seien "inkompetent". Sie habe einen Restrukturierungsplan vorgelegt, "der so konzipiert ist, dass er das existierende Regime und seine handverlesenen Nachfolger an der Macht hält". Kleine Gläubiger würden zu Gunsten großer Geldgeber benachteiligt. Durch sein Angebot würde CIT 150 Mio. $ an Gebühren sparen, argumentiert der 73-jährige Icahn.

Vorstandschef Jeffrey Peek hatte vergangene Woche angekündigt, zum Jahresende abtreten zu wollen. Ihm wird angelastet, in riskante Geschäftsfelder expandiert und die Bedrohung der Bank durch die Krise zu spät erkannt zu haben.

Durch die Umschuldung will CIT Verbindlichkeiten von über 30 Mrd. $ um mindestens 5,7 Mrd. $ reduzieren. Die Anleihegläubiger stimmen außerdem über einen Plan für eine außergerichtliche Insolvenz ab - die viele für den wahrscheinlichsten Ausgang halten. CIT habe nur wenig getan, um Geldgeber zur Teilnahme zu bewegen, die am wenigsten Interesse daran haben - etwa jene, die kurzfristige Verbindlichkeiten halten und bis zu Fälligkeit warten könnten, schrieben die Analysten von Creditsights.

CIT stemmt sich seit Monaten gegen den Zusammenbruch. Sollte es zu einem Insolvenzverfahren kommen, wäre es eines der größten aller Zeiten in den USA - und die größte Bankenpleite seit dem Kollaps der Sparkasse Washington Mutual. Vor allem aufgrund notleidender Hypotheken und Unternehmenskredite hat CIT in den vergangenen neun Quartalen rund 5 Mrd. $ verloren.

Die US-Regierung hatte die Mittelstandsbank Ende 2008 mit einer Kapitalspritze von 2,3 Mrd. $ gestützt, weitere Hilfe aber verweigert. Das Unternehmen erhielt daraufhin im Sommer einen Notkredit über 3 Mrd. $ von einer Gruppe großer Gläubiger. Dazu gehören der Hedge-Fonds Baupost, Finanzinvestoren wie Oaktree und Centerbridge und die Fondsgesellschaft Pimco. Die Allianz-Tochter ist der größte Gläubiger des Unternehmens. Diese Geldgeber könnten CIT mit einem weiteren Kredit von 3 bis 6 Mrd. $ unter die Arme greifen.

Quelle: FINANCIAL TIMES DEUTSCHLAND
Icahn's CIT Proposal Still Lacks Details
Melinda Peer, 10.21.09, 09:45 AM EDT
The commercial lender has a lot of questions for Carl Icahn before it can consider his $6 billion loan offer.






With little known about the particulars of Carl Icahn's offer to underwrite a $6 billion loan to CIT Group other than that the billionaire financier says that the company carries half the fees attached to the financing offered by some of the its current lenders, it's difficult to surmise what will happen next in the commercial lender's continuing saga.

The debt-burdened lender to small and midsize businesses has been struggling to avoid bankruptcy as more than $1 billion of unsecured debt comes due by the end of the year. (See "The CIT Bankruptcy Watch" and "CIT's Problematic Plan.") On Friday, the company amended terms of its restructuring plan in hopes of building bondholder support--prompting a letter to the board from Icahn. The self-described largest lender to CIT Group ( CIT - news - people )is, as he has done in the past, painting himself as a force out for the little guy and arguing that he's opposing the offer on the grounds that it favors large creditors in an attempt to win over support for the restructuring plan.
Article Controls



Icahn has offered to underwrite a loan of the same size with only $150 million in fees and no provision that bondholders approve the restructuring plan but details haven't yet been released. Whether there are other stipulations attached to Icahn's offer isn't yet clear. He's been vocal in his frustration at the CIT board and some of their past financing decisions--suggesting that he's vying for more control.

"Icahn seems to believe an orderly liquidation is best for the company, but how he plans to do this is unclear," said Keefe, Bruyette & Woods analyst Sameer Gokhale, adding that until the company gets a better idea of his intentions regarding the board and restructuring strategies, their hands are tied.

CIT has reportedly asked Icahn for more details on his offer. In the meantime, bondholders have to choose between a prepackaged bankruptcy for the company or the board's offer of a debt reorganization that would forgive about $6 billion in debt while extending the maturities of $25 billion more.

Jim Sinegal, an equities analyst with Morningstar, said Icahn may be trying gain more influence in order to get more value for debt holders further down in the capital structure--which would also mean less value for certain debt holders.



Since CIT's board has to act in the best interest of shareholders, they're obligated to consider a loan with more attractive terms. However, if there are strings attached to the offer, they'll be hesitant to consider it. Another obstacle to Icahn's plan, according to analysts, is that most of the bondholders who have to approve the company's restructuring plan are the same ones who stand to benefit from the unattractive terms of the CIT's restructuring plan.

Since different terms will likely mean different outcomes for the various classes of bondholders, one thing is certain: "No one proposal will be best for everyone," Sinegal said.


http://www.forbes.com/2009/10/21/cit-group-icahn-markets-equ…
Nur zur Erläuterung !

23.10.2009 10:26
CIT soll mit Goldman vor endgültiger Einigung über Kreditzahlungen stehen


New York (BoerseGo.de) - Das ums Überleben ringende New Yorker Kredithaus CIT Group Inc. könnte innerhalb der nächsten 24 Stunden einen Deal mit Goldman Sachs über die Auszahlung eines strittigen 3 Milliarden Dollar-Kredits abschließen. Dies berichtete das “Wall Street Journal” unter Berufung auf vertraute Kreise. CIT habe deswegen mit Goldman bereits eine provisorische Einigung erzielt.

Im Falle eines Abschlusses ende ein Verhandlungsmarathon zwischen einem Anleihegläubigergremium und CIT über eine 1 Milliarden Dollar-Zahlung. Eine Übereinkunft mit Goldman öffne für den bedeutenden Finanzierer von mittleren und kleinen Unternehmen die Tür für den Erhalt von neuen Milliarden, was zur Stärkung der Finanzkraft führe. Während der Kreditkrise haben die Verluste der Bank deren Einkünfte überschritten. Der neue Kredit stamme von der Bank of America Merrill Lynch und von bis zu 50 CIT-Anleihegläubiger.

Zu Wochenbeginn hat der Milliarden-Investor und CIT-Anleihegläubiger Carl Icahn dem angeschlagenen US-Mittelstandsfinanzierer ein Angebot unterbreitet, zu dessen Rettung einen Kredit in Höhe von sechs Milliarden Dollar bereit zu stellen. Sein Vorhaben bewahre die Anleihegläubiger vor der Abstimmung für ein überarbeitetes Umschuldungsangebot der CIT. Dieser vergangenen Freitag präsentierte Plan bevorzugt nach den Worten Icahns in unfairer Weise große Anleihegläubiger. CIT versucht bald fällig werdende Verbindlichkeiten in Höhe von 5,7 Milliarden Dollar zu reduzieren, um damit der Pleite zu entgehen (BoerseGo.de hat berichtet.

CIT hat weiters vergangenen Montag im Rahmen einer Pflichtmitteilung erneut vor einer Beantragung für Gläubigerschutz nach Chapter 11 gewarnt. Ein solcher Schritt sei möglicherweise auch im Falle einer im Rahmen eines Sanierungsplans zum Ziel gesetzten erfolgreichen Schuldumwandlung erforderlich. Volkswirte sehen in einer möglichen Pleite des Institus für die US-Wirtschaft ein Hindernis auf dem Weg zur Gesundung.


http://www.finanznachrichten.de/nachrichten-2009-10/15275486…
Icahn Issues Open Letter to CIT Bondholders
Icahn Issues Open Letter to CIT Bondholders
Oct. 23, 2009 (PR Newswire) --


NEW YORK, Oct. 23 /PRNewswire/ -- Carl C. Icahn issued an open letter to the bondholders of CIT Group today. Attached is the full text of the letter.



CARL C. ICAHN



TO: CIT GROUP BONDHOLDERS



October 23, 2009



Ladies and Gentlemen:



I have learned over the years that the best investments are based on simple concepts; I call these "no brainers." I believe that the CIT bonds would qualify as just such an investment with one caveat; we, the bondholders, must not endanger the value of our investment by voting for the Exchange Offer/pre-packaged bankruptcy plan currently proposed by the company. CIT's balance sheet is comprised of a diversified pool of loans and assets which will generate huge cash inflows over the next few years. If these assets are "run off" in a controlled way, we believe our bonds are worth par and in no event less than 80-85% of par value. However in the company's plan, the assets will not be wound down; rather, they will be reinvested in an operating business controlled by the company's current Board of Directors. This is the same Board and senior management team that has presided over the demise of our company by making Titanic-sized errors, some of which we believe were the result of gross negligence.



The company's stated strategy is to run a "bank-centric" operating business by transferring several of the business platforms into the Utah bank. While we are not against trying to grow the value of these platforms, we are opposed to doing so at the risk of the about $65 billion of asset value mentioned above. The company's plan would put our assets at peril. There are several major pitfalls in their plan: 1) in order to keep operating the businesses prior to their transfer, the company is going to continue to reinvest as much as $15-20 billion of loan proceeds as they are repaid, rather than returning the money to bondholders (given the company's track record, chills run through me thinking of the current team investing our money); 2) corporate overhead will be several hundred million dollars per year higher than it needs to be in order to keep these businesses alive; and 3) the company will continue to operate as a bank holding company, which means that no matter how poorly they perform it will be almost impossible to significantly the Board.



The senior management and board have received large perquisites over the years, even as they have bankrupted CIT by making major strategic errors (such as the Goldman Sachs transaction, which is one of the worst financings in corporate history and will require our company to pay an outrageously large prepayment penalty upon default or cancellation). The perquisites, including large bonuses as well as donations to personal causes, were not cut back even when the company kept bleeding our money on the path to bankruptcy. The board and senior management are now asking us to "bail them out" by approving a pre-packaged plan which would 1) give them control of an operating company which is losing $1 billion/year, with all the freedom to continue with their attendant perquisites, 2) give them releases for past mistakes (and I believe there were many), and 3) provide funding, with our money, for ongoing operations, even though they are in the red.



Even more unconscionable is the fact that the company is using our money to purchase votes for its Exchange Offer/Pre-Pak. The company is currently arranging a financing. The economics offered to prospective lenders are well in excess of what the current syndicated loan market should dictate, given the loan's collateral coverage. However, in order to participate as a lender and purchase this undervalued loan, you must be a large bondholder and vote to accept the company's Exchange Offer and/or pre-packaged plan. Rather than doing a financing on the best possible terms for the company, the Board has decided to over-pay for this debt to buy votes for their plan. Would you vote for a governor who used state funds to buy votes? Not only wouldn't you vote for him, you would throw him in jail! We are currently offering an alternative financing that would save the company $150 million and wouldn't require bondholders to vote either way. Many bondholders have called us to express interest in our financing. One wonders if the company even tried to get cheaper financing, and if they did, how they could possibly have failed to do so. The company should be aware that if they buy votes through this loan, we will fight the debt sale and the fraudulent election through the courts for as long as it takes.



Meanwhile, Houlihan Lokey, purported advisor to the bondholders, recommends the company's plan. But Houlihan has their own agenda. They have already received millions of dollars in fees from the company and continue to receive hundreds of thousands of dollars per month. If the Pre-Pak is approved they will receive millions of dollars in additional fees within a few months with virtually no risk. However, if the company files for a more traditional bankruptcy, Houlihan's outrageous fees could be challenged in court, and will likely take longer to collect. Little wonder why Houlihan has come down on the side of the company. Little wonder they have failed to challenge the waste of funds in the $6 billion "vote-buying" financing even though they purportedly represent our interests.



CIT would have you believe that a bankruptcy would be calamitous. We do not believe this to be the case. Even in a traditional bankruptcy the company's assets would be protected and a run-off of assets would prove extremely profitable for bondholders. Additionally, in my opinion it would not take long to approve a plan that might include releases for the Board, which I believe they will be very interested in receiving. However, I am certainly not against arriving at a pre-packaged plan which might eventually include the transfer of the platforms into an operating bank. But it is complete obfuscation on the part of the company to say that the only way to get the government to approve the reopening of our bank is to keep the current Board in control. To me this is ludicrous. The government has shown no love for senior management or the Board. They have not only refused to bail them out, they have issued a cease and desist order on an otherwise healthy bank. What does this tell you they think of current management and the Board? Ironically, I believe the best way to get government approval to open the bank again is to rid ourselves of the Board and senior management team. Therefore, I have suggested the following compromise:



1) Reconfigure the proposed Board. Rather than allowing the current Board members to retain control, we would propose a 10 person board with current Board members comprising no more than 3 of the directors, the bondholders, or a committee of the bondholders, nominating 6 independent directors and the new CEO holding the final seat. We will agree that all of the nominees will be subject to approval by the regulators so that we can have the hope of reopening the bank. The company is misleading you when they tell you that in their plan we will have the opportunity to replace the Board at an annual meeting to take place in May, because as a bank holding company it is nearly impossible to have a proxy fight to replace the majority of the directors- make no mistake, the current Board wants to entrench themselves or their designees for the foreseeable future;



2) Tighten the cash sweep. We would eliminate the myriad carve-outs and other exceptions to the cash sweep to ensure that the majority of cash coming into the company is used to repay our debt; and



3) Provide for a discreet, nine month timeframe to allow for the transfer of the Vendor and Trade Finance platforms into the bank. If the government does not permit the transfers within that timeframe then the assets would be wound down and overhead reduced, with proceeds paid out to debt holders.



I believe that bondholders should insist that the company put forth the pre-packaged plan as outlined above. It is time that the Board realizes that this company now belongs to the bondholders, not them. We need your support to prove this to certain members of the Board and management. It is important that you contact us and let us know your thoughts. Please reach out to either Vince Intrieri at (212) 702-4328 or Steve Mongillo at (212) 702-4343.



Sincerely



Carl C. Icahn



SOURCE Carl Icahn




Source: PR Newswire (October 23, 2009 - 3:04 PM EDT)
Antwort auf Beitrag Nr.: 38.247.786 von Aktientitan am 25.10.09 09:51:22bullanalyst ist ein sehr guter chartanalytiker, ich benutze den auch, besonders da in USA eine sehr hohe aufmerksamkeit auf chartanalyse gelegt wird bei der enormen automatisierung der grossen trader.man sieht deutlich, dass bei CIT sich bereits viele grosse und besser informierte eingedeckt haben und momentan der kurs stark durch teilweise unsichere zocker hin und her getrieben wird. eine inso von CIT ist mittlerweile ausgeschlossen und wir werden sehen wer die zukunft bestimmt, ob Icahn oder das CIT board ? oder alle werden sich einig, bevor ein groesserer verlust anfaellt ! ich denke, kurzfristig wird der kurs richtung $1,5 gehen und dann entspr. weiter !
Icahn Proposes Own CIT Bankruptcy Plan

By Dan Freed 10/23/09 - 04:09 PM EDT


That loan is set to be amended to terms more favorable to CIT, according to a report Friday in The Wall Street Journal, which said the two companies had "reached a tentative agreement," citing anonymous sources.

Goldman spokesman Michael DuVally declined to confirm the report, saying only: "Goldman Sachs continues to work constructively with CIT and its creditors to provide the company with a sound and workable financing facility."

As usual, Icahn didn't pull any punches. As part of his criticism of the current board and its proposal, he stated: "This is the same Board and senior management team that has presided over the demise of our company by making Titanic-sized errors, some of which we believe were the result of gross negligence."

CIT has been scrambling to cut its debt in response to a funding crisis that began in earnest after it was denied access to a government program that guaranteed the debt of larger lenders, including General Electric (GE Quote) and large banks like Citigroup (C Quote), Bank of America (BAC Quote) and Wells Fargo (WFC Quote). Bondholders have until midnight Oct. 29 to agree on the proposed debt exchange, or some type of bankruptcy filing appears likely. CIT has proposed a debt exchange that could keep the company out of bankruptcy, but Icahn rejects the exchange idea.

"CIT would have you believe that a bankruptcy would be calamitous. We do not believe this to be the case," Icahn writes.

-- Written by Dan Freed in New York.


http://www.thestreet.com/story/10616374/2/icahn-proposes-own…
Die Frage ist doch, werden Kunden der CIT durch eine moegliche Insolvenz negativ beintraechtigt? Wir sind uns doch alle einig, es geht nicht uim die Rettung von CIT sondern um die Probleme die eine Insolvenz bei den Kunden bereiten wuerde.

Wie lauft eigentlich eine "Schnelle"- Insolvenz ab? das waere ja die Alternative zur "Rettung", laufen dann die Geschaefte ganz normal weiter und sind die Schulden los, oder was passiert dann? Wer kennt sich denn da aus?
FACTBOX- Biggest changes in NYSE short interest
Dienstag, 27. Oktober 2009, 16:41 Uhr

Diesen Artikel drucken
[-] Text [+]

NEW YORK, Oct 27 (Reuters) - Short interest in Citigroup Inc (C.N: Kurs) rose
more than 50 percent in the first half of October, data from the New York Stock
Exchange showed, indicating increasing bearish sentiment in the stock.

Bets on declines in shares of Xerox Corp (XRX.N: Kurs) spiked more than
seven-fold, while interest in Fidelity National Information Services (FIS.N: Kurs)
decreased almost 80 percent.

Investors who "short" securities borrow shares and then sell them, waiting
for the stock to fall so they can buy the shares at the lower price, return
them to the lender and pocket the difference.

Below are the five NYSE stocks that experienced the largest increases and
decreases in their total short positions during the first half of the month
according to information released by the exchange.

The five companies with the largest overall short positions are also
listed.

The latest date is as of Oct. 15, while the previous period's data is as of
Sept. 30.

Data for total short interest in the exchange, expected after the market
close on Monday, was still not available on Tuesday morning.
COMPANY OCT 15 SEPT 30 NET CHANGE PCT CHANGE
-----------------------------------------------------------------------------
FIVE BIGGEST INCREASES:
Citigroup Inc (C.N: Kurs) 178,057,740 117,961,458 60,096,282 50.95
Xerox Corp (XRX.N: Kurs) 47,136,876 6,622,651 40,514,225 611.75
Pfizer Inc (PFE.N: Kurs) 285,836,513 267,603,794 18,232,719 6.81
Merck & Co Inc (MRK.N: Kurs) 195,283,992 179,324,501 15,959,491 8.90
CIT Group Inc (CIT.N: Kurs) 81,042,082 66,738,960 14,303,122 21.43
FIVE BIGGEST DECREASES:
General Electric Co (GE.N: Kurs) 111,894,884 129,973,862 -18,078,978 -13.91
EMC Corporation (EMC.N: Kurs) 44,867,490 61,746,557 -16,879,067 -27.34
Cemex SAB de CV (CX.N: Kurs) 28,861,512 45,442,185 -16,580,673 -36.49
Fidelity Nat Info (FIS.N: Kurs) 3,950,367 18,824,948 -14,874,581 -79.02
Harley-Davidson Inc (HOG.N: Kurs) 33,323,909 39,873,552 -6,549,643 -16.43
FIVE BIGGEST POSITIONS:
Pfizer Inc (PFE.N: Kurs) 285,836,513 267,603,794 18,232,719 6.81
Merck & Co Inc (MRK.N: Kurs) 195,283,992 179,324,501 15,959,491 8.90
Citigroup Inc (C.N: Kurs) 178,057,740 117,961,458 60,096,282 50.95
General Electric Co (GE.N: Kurs) 111,894,884 129,973,862 -18,078,978 -13.91
Fannie Mae (FNM.N: Kurs) 110,977,012 111,994,988 -1,017,976 -0.91
Source: NYSE data as of Oct. 15, Reuters Estimates
28.10.2009, 06:12

US-Finanzierer in Not
CIT zofft sich mit Milliardär Icahn
Der US-Finanzierer kämpft ums Überleben - und die Nerven liegen offenbar blank: CIT legt sich öffentlich mit dem Milliardär an. Icahn hatte zuvor einen Rettungskredit angeboten und die Gelegenheit genutzt, gegen das Management zu stänkern.

Der ums Überleben kämpfende US-Finanzierer CIT legt sich öffentlich mit dem aggressiven US-Investor Carl Icahn an. Der von Konzernchefs gefürchtete Milliardär hatte dem für die US-Wirtschaft wichtigen Mittelstandsfinanzierer einen Rettungskredit angeboten und das Management zugleich kritisiert.
Nun kontert CIT: Icahn habe die Pläne des Unternehmens "falsch dargestellt". Er gebe zudem nur "vage Versprechen" ab, teilte der Finanzierer am Dienstagabend mit.
Der 73-jährige Icahn hatte sich erst vergangenes Jahr spektakulär mit dem Internet-Konzern Yahoo angelegt. Mit anderen Aktionären erzwang er den Rücktritt des Konzernchefs. Bei CIT hat der unter Druck geratene Chef Jeffrey Peek allerdings ohnehin seinen Abgang zum Jahresende angekündigt.
CIT ist durch die Finanzkrise von der Pleite bedroht und will bei seinen Gläubigern eine Umschuldung erreichen. So sollen die Verbindlichkeiten um mindestens 5,7 Mrd. $ sinken.
Das Unternehmen besserte seine Offerte an die Gläubiger mehrfach nach und gab ihnen mehr Zeit. Eine erste Frist läuft in der Nacht zum Freitag aus. Icahn hatte behauptet, der von ihm angebotene Kredit in Milliardenhöhe spare dem Finanzierer rund 150 Mio. $.
Ein Zusammenbruch von CIT wäre die größte Pleite eines US-Finanzhauses seit dem Aus der Investmentbank Lehman Brothers vor gut einem Jahr. Der Finanzierer versorgt rund eine Million US-Unternehmen mit Krediten. CIT ist aber auch im Geschäft mit dem Leasing und der Finanzierung von Flugzeugen und Güterwaggons tätig.

http://www.ftd.de/unternehmen/finanzdienstleister/:us-finanz…
Icahn Provides Financing Commitment to CIT
Icahn Provides Financing Commitment to CIT
Oct. 27, 2009 (PR Newswire) --


NEW YORK, Oct. 27 /PRNewswire/ -- Carl C. Icahn announced today that the following letter was delivered to CIT, pursuant to which certain of his affiliates have committed to provide a new $4.5 billion term loan to CIT as an alternative to the loan currently being arranged by Bank of America, N.A.:



ICAHN CAPITAL LP



CIT Group Inc.

1 CIT Drive

Livingston, NJ 07039

Attention: Glenn Votek, Executive Vice President & Treasurer


October 27, 2009


Ladies and Gentlemen:


Attached is our commitment letter to provide a new $4.5 billion term loan. The term loan would be structured as an expansion of your existing $3.0 billion first lien term loan and would be conditioned upon your receiving amendments from your existing lenders to allow us to share collateral on a pari passu basis with them. It is our understanding that all of the terms and conditions for this loan are identical to the expansion first lien loan that is currently being agented by Bank of America ("BOA"), with two exceptions: 1) the upfront fees to the company would be 2.50% in our loan versus 5.00% under the BOA loan, for a total savings to CIT of approximately $112.5 million, and 2) allocations of our term loan will not be conditioned on a vote for or against the company's Exchange Offer/Plan of Reorganization.


You have indicated to us that your existing first lien lenders are willing to provide an amendment to allow for an expansion of the existing loan currently being agented by BOA. It is our understanding that that loan is being provided primarily by the largest lenders in the existing secured term loan, who also happen to be some or all of the members of the Steering Committee of the unsecured bondholders of CIT. We believe that Steering Committee members, who are influencing a significant degree of control over the company, have a responsibility to act in the best interests of the company and the other bondholders, and therefore should be willing to grant us the same amendments they are willing to grant themselves. The fact that they have agreed to provide an amendment to allow for the incremental debt in the BOA loan indicates that they are comfortable with the increased debt from a credit perspective. Therefore, it would be reprehensible to deny us the same amendment so that they can earn over $100 million in extra fees while at the same time being complicit in the manipulation of the vote for the Exchange Offer/Plan of Reorganization.


We are eager to work with you through the night to close the loan and save the company a significant amount of money. We would also be happy to assist you in getting the appropriate amendments to allow us to close the loan. Based on the fact pattern discussed above, if the existing lenders will not grant you the amendments and instead force you to close on the BOA loan, we intend to challenge the validity of the loan and the liens through the courts.


In order to close and fund the loan on a timely basis, we will need you to accept our commitment by 6:00 p.m. this evening.


Sincerely,


Carl C. Icahn





SOURCE Carl Icahn




Source: PR Newswire (October 27, 2009 - 5:45 PM EDT)

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CIT Bonds Show Bankruptcy Foregone Conclusion as Swap Expires
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By Pierre Paulden and Caroline Salas

Oct. 29 (Bloomberg) -- CIT Group Inc. bond and credit- default swap prices show that investors are betting the 101- year-old commercial lender will file for bankruptcy after a debt exchange expires today.

Since CIT Chief Executive Officer Jeffrey Peek started a $30 billion debt swap Oct. 1, the company’s notes due Nov. 3 have dropped 13 cents to 67 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Holders of the $500 million in notes are being offered 90 cents on the dollar in new debt and equity in an out-of-court exchange. They would get 70 cents on the dollar in bonds and new stock in a pre-packaged bankruptcy.

“We believe they will file for bankruptcy within the week, provided nothing unexpected occurs,” Adam Steer, an analyst with CreditSights Inc. in New York, said in a telephone interview.

CIT, which lost $5 billion in the past nine quarters and failed to get a second round of taxpayer funding in July, is seeking to avert collapse by asking bondholders to agree to the swap or vote for the pre-packaged bankruptcy. It faces opposition from billionaire investor Carl Icahn, who says he’s the largest bondholder, with $2 billion in debt. If CIT is forced into a “free-fall” bankruptcy, unsecured claims may fetch as little as 6 cents on the dollar, Peek said.

Bankruptcy Alternative

If the debt swap fails, CIT plans to file for bankruptcy before $800 million of bonds mature next week, according to people familiar with the situation who declined to be identified because the talks are private. A group of bondholders that provided the emergency financing in July has always preferred a pre-packaged bankruptcy that would have the New York-based company emerge from court proceedings in 60 days, the people said. The debt-exchange offer expires at 11:59 p.m.

Curt Ritter, a CIT spokesman, declined to comment.

In its statement yesterday, the lender said “through the substantial deleveraging featured in CIT’s restructuring plan, whether completed in or out of court, the company is confident that CIT will emerge as a strong bank-holding company with improved capital, liquidity and earnings potential.”

CIT finances about 1 million businesses from Dunkin’ Brands Inc. in Canton, Massachusetts, to Eddie Bauer Holdings Inc., the clothing chain in Bellevue, Washington, that is operating under bankruptcy protection. The company says it’s the third-largest U.S. railcar-leasing firm and the world’s third-biggest aircraft financier.

Bondholder Assistance

The company said yesterday it received $4.5 billion in loans from a “diverse group” of lenders, including some of its bondholders, to finance its restructuring, spurning an offer for a loan of the same size from Icahn. The money will be used to “finance a portion of the company’s existing secured indebtedness, which may come due as a result of restructuring,” CIT said in a statement.

The CIT notes due Nov. 3 fell 2.5 cents to 67 cents on the dollar yesterday, Trace data show.

The cost to protect CIT debt against default for five years has risen 4.7 percentage points to 38.7 percent upfront since Sept. 30, according to CMA DataVision. That means it would cost $3.87 million initially and $500,000 annually to protect $10 million of CIT bonds from default for five years.

The cost of the credit-default swaps implies that traders have priced in an 86 percent chance that the company will default within five years, a standard pricing model used by Bloomberg shows. The model assumes investors could recover 40 cents on the dollar in a bankruptcy proceeding.

‘Default Is Imminent’

“The credit-default-swap market is telling you default is imminent,” Kevin Starke, an analyst at CRT Capital Group LLC in Stamford, Connecticut, said in a telephone interview. “The bond prices are indicating the pre-pack is likely.”

Credit-default swaps are financial instruments based on bonds and loans that are used to speculate on a company’s ability to repay debt or to hedge against losses. They pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.

Shares in CIT rose 10 cents, or 10.4 percent, to $1.06 in New York Stock Exchange composite trading. The shares, which traded at more than $61 each in February 2007, have lost 77 percent this year.

Icahn, 73, who built his reputation in the 1980s as a corporate raider, said this week that CIT debt is worth more in a traditional bankruptcy and proposed to buy holders’ bonds for 60 cents on the dollar in a tender offer lasting 30 days if they reject CIT’s plans.

Maturing Debt

About $9.11 billion of CIT loans and bonds mature through 2010, according to data compiled by Bloomberg. The company has $47.2 billion of loans and bonds, Bloomberg data show.

CIT altered the terms of its debt-exchange plan yesterday so that if it filed for a pre-packaged bankruptcy, bondholders will get to recommend a majority of its directors.

The steering committee comprising Capital Research & Management Co., Centerbridge Partners LP, Oaktree Capital Management LLC and Silver Point Capital LP will identify four of the 13 directors. Other investors who own at least 1 percent of CIT’s bonds and unsecured bank debt can recommend three directors.

CIT turned to its bondholders in July for the $3 billion rescue financing after failing to win access to a Federal Deposit Insurance Corp. program to sell U.S.-backed debt. The company had received $2.33 billion in taxpayer funds in December to stay afloat.

To contact the reporters on this story: Pierre Paulden in New York at ppaulden@bloomberg.net; Caroline Salas in New York at csalas1@bloomberg.net
Last Updated: October 29, 2009 00:00 EDT

http://www.bloomberg.com/apps/news?pid=20601103&sid=ahYz61Bj…
New CIT aid is in hedges
It's now fund group vs. Icahn

By JOSH KOSMAN

Last Updated: 3:26 AM, October 29, 2009

Posted: 1:07 AM, October 29, 2009
A group of hedge funds yesterday offered to lend troubled finance company CIT Group $4.5 billion in order to shore up creditor support for a controversial debt swap, pitting the funds against billionaire activist investor Carl Icahn, who wants the swap voted down. The lifeline, extended by a group that includes Silver Point Capital, comes as CIT's lenders must decide by midnight tonight whether to support a company-proposed debt exchange, a separate pre-packaged bankruptcy plan or neither proposal. Icahn has spent this week urging creditors to reject both proposals in order for the company to default on its loans and give a bankruptcy court control of the company, which can then sell most of its $60 billion in assets and use the proceeds to pay off $42 billion in debt. CIT provides financing to 1 million businesses, including Dunkin' Brands franchisees. In making the loan to CIT, Silver Point is putting its support behind the company's board and management, whom Icahn has criticized as being responsible for CIT's woes. However, a Silver Point spokesman downplayed the notion the hedge fund is at odds with Icahn."Silver Point has and continues to have a constructive relationship with Carl Icahn in this and other situations," he said. "We have acted as a bridge between Carl and CIT to help them mediate their conflict." Nevertheless, Silver Point and Icahn are sitting on opposite sides of the table which sets up a rematch between Icahn and Silver Point's lawyer, Chaim Fortgang. The two sparred in 1997, when Fortgang represented creditors fighting Icahn in Marvel Entertainment's bankruptcy case. Icahn lost that battle. Much is at stake for Silver Point and other hedge funds like Baupost Group and Centerbridge Partners. Last summer, the funds bought short-term CIT debt on a bet that the company's problems would lead to a government bailout that would pay them at par, according to a person familiar with the matter. However, those plans went awry in July when the Federal Deposit Insurance Corp. banned CIT's bank from receiving new deposits and the company faced a severe cash squeeze. The funds, which stand to lose big if the company files for bankruptcy, responded by lending CIT $3 billion to prevent a collapse of the company."[The hedge funds] are doing everything to keep the company out of bankruptcy," said Michael Gallo, a partner at law firm DeCotiis, FitzPatrick, Cole & Wisler, who's following the case but is not involved. "If CIT can obtain this type of capital, it is not a bad bet they can stay out" of bankruptcy. He added that he thinks the restructuring vote at this point probably has a 50 percent chance of succeeding. Time is of the essence for CIT, which must make an $800 million payment on Tuesday. If the company doesn't get enough support for the swap or the pre-packaged bankruptcy, it could file for Chapter 11 within the next few days.

A group of hedge funds yesterday offered to lend troubled finance company CIT Group $4.5 billion in order to shore up creditor support for a controversial debt swap, pitting the funds against billionaire activist investor Carl Icahn, who wants the swap voted down.

The lifeline, extended by a group that includes Silver Point Capital, comes as CIT's lenders must decide by midnight tonight whether to support a company-proposed debt exchange, a separate pre-packaged bankruptcy plan or neither proposal.

Icahn has spent this week urging creditors to reject both proposals in order for the company to default on its loans and give a bankruptcy court control of the company, which can then sell most of its $60 billion in assets and use the proceeds to pay off $42 billion in debt.

CIT provides financing to 1 million businesses, including Dunkin' Brands franchisees.

In making the loan to CIT, Silver Point is putting its support behind the company's board and management, whom Icahn has criticized as being responsible for CIT's woes.

However, a Silver Point spokesman downplayed the notion the hedge fund is at odds with Icahn.

"Silver Point has and continues to have a constructive relationship with Carl Icahn in this and other situations," he said. "We have acted as a bridge between Carl and CIT to help them mediate their conflict."

Nevertheless, Silver Point and Icahn are sitting on opposite sides of the table which sets up a rematch between Icahn and Silver Point's lawyer, Chaim Fortgang. The two sparred in 1997, when Fortgang represented creditors fighting Icahn in Marvel Entertainment's bankruptcy case. Icahn lost that battle.

Much is at stake for Silver Point and other hedge funds like Baupost Group and Centerbridge Partners. Last summer, the funds bought short-term CIT debt on a bet that the company's problems would lead to a government bailout that would pay them at par, according to a person familiar with the matter.

However, those plans went awry in July when the Federal Deposit Insurance Corp. banned CIT's bank from receiving new deposits and the company faced a severe cash squeeze. The funds, which stand to lose big if the company files for bankruptcy, responded by lending CIT $3 billion to prevent a collapse of the company.

"[The hedge funds] are doing everything to keep the company out of bankruptcy," said Michael Gallo, a partner at law firm DeCotiis, FitzPatrick, Cole & Wisler, who's following the case but is not involved. "If CIT can obtain this type of capital, it is not a bad bet they can stay out" of bankruptcy. He added that he thinks the restructuring vote at this point probably has a 50 percent chance of succeeding.

Time is of the essence for CIT, which must make an $800 million payment on Tuesday. If the company doesn't get enough support for the swap or the pre-packaged bankruptcy, it could file for Chapter 11 within the next few days.

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http://www.nypost.com/p/news/business/new_cit_aid_is_in_hedg…
CIT moves closer to pre-packaged bankruptcy approval

On 10:51 pm EDT, Friday October 30, 2009





NEW YORK (Reuters) - CIT Group (NYSE:CIT - News) has met at least one of the hurdles necessary to file for a prepackaged bankruptcy, sources said, bringing the commercial lender one step closer to the fast bankruptcy process it is seeking to lower its liabilities and get back to health.

Holders of about 90 percent of its unsecured bonds have approved the prepackaged bankruptcy, two sources familiar with the matter said late Friday. The company needed two-thirds approval.

But the company is still counting ballots to see if half of the voting bondholders have approved the deal, a necessary condition, according to a person familiar with the matter.

The 101-year old company is widely expected to clear that hurdle, and could file for bankruptcy as soon as this weekend.

CIT had been working hard to win bondholder support for its plan to restructure, and earlier Friday announced key agreements with creditors, including support from Carl Icahn, who had previously been the main opponent to the company's plans.

CIT also announced an agreement with Goldman Sachs Group (NYSE:GS - News) that would reduce a $3 billion credit line to $2.125 billion but, critically, keep the line open during a bankruptcy.

"It looks like everything is pointing to a prepack," said Adam Steer, an analyst at CreditSights in New York. "Their best option is to turn off the lights and work their balance sheet down. It's pretty clear at this point."

The prepackaged bankruptcy plan involves giving bondholders new debt worth 70 pct of the face value of their old debt, plus giving them an ownership stake in the company equal to about 92.5 percent of the common stock.

Current preferred shareholders, including the government's $2.33 billion paid to CIT under the Troubled Asset Relief Program, will be converted into 5 percent of the company's common stock. Current common shareholders will get 2.5 percent of the new company.

CIT warned last week that if investors did not support its restructuring efforts, it could end up filing for bankruptcy without a plan for how to fix itself. Exiting bankruptcy could take a long time and destroy much of the company, CIT's management said in a presentation.

"We're all glad this is behind us and that we can now consummate this transaction and hopefully make bondholders some more money," said Jeff Werbalowsky, chief executive of Houlihan Lokey, the adviser to CIT bondholders.

"The company did the right thing in putting this behind us, and that's where this needs to be for a quick and successful restructuring."

CIT had sought to get support from bondholders to exchange their old debt for new securities, or to agree to a pre-packaged bankruptcy. The votes were due by the end of Thursday, October 29.

The debt exchange was widely seen as doomed to fail, given the number of competing interests involved.

CIT was once the largest lender to small and medium sized business in the United States. It said in a presentation earlier this month that it hopes to move key operations, such as vendor financing and small business lending, into its bank unit. That bank unit can then fund lending through deposit borrowing.

CIT fell victim to the credit crunch, which lifted its borrowing costs, and the recession, which left it with increasing numbers of bad loans.

ICAHN SUPPORT

Icahn, who says he is CIT's largest bondholder, said in a statement that he changed his mind on the pre-packaged bankruptcy plan because he was pleased by changes the company made, including establishing an accelerated process for appointing new directors.

"These changes significantly improve corporate governance and cash flow protections, and are positive for the company and all noteholders," he said in the statement.

Shares in cash-strapped CIT slumped 22.5 percent to 73 cents, as investors took the announcement as an indication that the pre-packaged bankruptcy plan would go ahead.

CIT's arrangement with Icahn also includes provision for an additional $1 billion in financing from Icahn Capital.

The lender said the additional credit could be drawn as debtor-in-possession financing in the event of a bankruptcy.

The upfront cost for this financing could be 40 percent lower than credit the company secured earlier in the week, Icahn said in his statement.

The century-old lender on Wednesday arranged for $4.5 billion in financing from a group of creditors as an addition to a $3 billion loan arranged in July.

(Reporting by Elinor Comlay, Walden Siew, and Dan Wilchins; Additional reporting by Joseph Giannone and Walden Siew; Editing by Gerald E. McCormick, Gary Hill and Dean Yates)
CIT Group Announces More 'Restructuring', But Bankruptcy Outcome Still Unclear
by: Daniel Harrison November 01, 2009

Throughout the week, a burning question has been on the lips of investors, bankers and business owners alike: “Is CIT filing for Chapter 11?” Despite a flurry of announcements Friday, no one is that much wiser.

CIT Group (CIT) has been slowly nearing bankruptcy since August, when it arranged a last-minute deal with its bondholders to delay the repayment of billions of dollars in short-term debt maturities. Throughout the fall, while other financial organizations have prospered, CIT’s directors have been focusing on trying to keep the firm alive.

Those strategies seem to be succeeding, but it’s still unclear to what extent. Today, the small business lender — whose survival many argue is crucial to a quick U.S. economic recovery — announced that it had arranged with Goldman Sachs (GS) to reduce an outstanding $3 billion loan to $2.13 billion.

Wednesday, hedge funds agreed to pony up $4.5 billion in order to help CIT fend off a hostile debt bid by Carl Icahn. Most recently however, the embattled lender appears to have made peace with the former Wall Street Raider: today, it said that it has agreed a deal where Icahn will provide $1 billion in financing if the hedge funds’ billions don’t turn out to be enough to see it through its troubles. (In return, Icahn agreed to back down from making bondholders a counter-offer for their notes.)

Here’s the problem: It’s a well known fact that Icahn wants CIT to file for Chapter 11. The same cannot be said for the firm’s directors however, many of whom are common stockholders and would take a substantial financial beating in the event of a bankruptcy. In fact, this week it appears that the company has been eager to dispel that possibility in the minds’ of market participants, as it has gravitated towards referring to its moves as just a “restructuring.”

On stock message boards, debate over this issue is rapidly turning downbeat: “The restructuring plan leaves nothing for the common holder. Looks like he’s (sic) screwed to me,” speculates one investor. Seeking Alpha reports in its Market Currents Section:

CIT Group (CIT) agrees to accept $1B in backup financing from Carl Icahn, to be tapped if it needs more than the $4.5B it accepted from other bondholders. For his part, Icahn will back down while the company restructures in bankruptcy; it plans to file as soon as Sunday night or early Monday and Icahn will vote for the plan. CIT’s debt exchange likely failed. Shares picked up a bit as trading resumed, now down 16%.

But for all the apparent certainty of a bankruptcy filing, the issue still remains far from clear-cut. For a start, it wouldn’t suit the political agenda of the current White House administration at all to be seen as bailing out Goldman Sachs but not saving a small-business lender. Secondly, if a CIT bankruptcy culminated in a Lehman Brothers-style fiasco, President Obama would be viewed by many as just another incompetent politician grappling with an economy and a stock market that he doesn’t quite get. In that case, it would be much easier for Treasury to execute a last-minute bailout of the firm and explain to taxpayers that this time, their money is actually saving their businesses.

Further, Goldman Sachs’ interests are hardly served in the event of a bankruptcy: it essentially gets a billion dollars less now than it would have a week ago in the event of Chapter 11. It’s hard to think that Goldman wouldn’t have mandated a no-bankruptcy clause in the negotiations of the loan reduction announced this morning.

It still remains to be seen what will transpire. But one thing is for sure: a CIT bankruptcy would a cost a lot of players a ton of capital: political and financial.

Disclosure: I own a small number of shares in CIT Group.

http://seekingalpha.com/article/170321-cit-group-announces-m…
Sonntag, 01. November 2009

Größte Pleite seit Lehman
CIT meldet Konkurs an




Der krisengeschüttelte Mittelstandsfinanzierer CIT meldet Konkurs an. Das Management sieht darin offenbar den einzigen Weg zur Sanierung dieser für die US-Wirtschaft zentralen Finanzinstitution.



Der US-Mittelstandsfinanzierer CIT hat Konkurs angemeldet. CIT habe Antrag auf Gläubigerschutz unter Kapitel 11 des US-Insolvenzrechts gestellt, teilte das Unternehmen mit. Demnach hat die Gruppe Verbindlichkeiten von knapp 65 Milliarden Dollar bei Vermögenswerten von gut 71 Milliarden Dollar.

Die Insolvenz ist die größte Pleite seit dem Zusammenbruch der Investmentbank Lehman Brothers im September vergangenen Jahres. CIT hat monatelang um sein Überleben gekämpft. Zuletzt sicherte sich das Traditionshaus aber die Zustimmung seiner Gläubiger mit unbesicherten Anleihen zu einem geordneten Insolvenzverfahren.

In dem Verfahren will die Bank einen Teil ihrer Schulden abschütteln, um danach ohne diesen Ballast ihren Betrieb wieder aufnehmen zu können. Der angeschlagene Kreditgeber von Tausenden US-Einzelhändlern und kleineren Firmen war in der Finanzkrise ins Stolpern geraten, weil er sich im Kreditboom zu viele Hypotheken- und Studentendarlehen aufgeladen und einen Schuldenberg von 40 Milliarden Dollar angehäuft hatte.
Zusätzliche Milliarden

Wie bereits am späten Freitagabend bekannt geworden war, gewährte Icahn dem US-Konzern für das Verfahren einen zusätzlichen Kredit über eine Milliarde Dollar. Zudem sagte Goldman Sachs zu, eine Kreditlinie über gut zwei Milliarden Dollar während eines Insolvenzverfahrens offen zu halten.

Den Plänen zufolge sollen die Schuldtitel des Konzerns bei dem Konkursverfahren auf 70 Prozent ihres Nennwertes gekappt werden. Als Ausgleich würde ein Großteil der neu auszugebenden Aktien an die Gläubiger gehen. Die gegenwärtigen Aktionäre würden bei dem Verfahren allerdings sehr schlecht wegkommen. Vor diesem Hintergrund war das Papier am Freitag in New York um rund ein Viertel abgestürzt.

Die Insolvenz der CIT ist die größte Pleite seit dem Zusammenbruch der Traditionsbank Lehman Brothers. Erst am Mittwoch hatte CIT einen Kredit über 4,5 Mrd. Dollar bekommen. Die Gelder würden genutzt, um Verbindlichkeiten zu refinanzieren, hieß es. Im Sommer hatte CIT bereits eine Geldspritze über drei Milliarden Dollar von Gläubigern erhalten.


http://www.n-tv.de/wirtschaft/CIT-meldet-Konkurs-an-article5…
Untertrieben ist wohl die Behauptung, die Aktionäre kämen schlecht weg. Der Insolvenzplan sieht wohl die vollständige Enteignung der Stammaktionäre vor. :rolleyes:
Das heißt natürlich nicht, dass man als cleverer Trader nicht nochmals mit den Anteilen spielen kann und an einen anderen Schlauen die jetzt wertlosen Aktien weiterreichen kann. :laugh:
!
Dieser Beitrag wurde moderiert. Grund: Fäkalsprache
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Dieser Beitrag wurde moderiert. Grund: Fäkalsprache
!
Dieser Beitrag wurde moderiert. Grund: Fäkalsprache
Nov 11, 2009 15:12 ET
Global DiSCS Trust 2004-1 (TSX:DST.UN) Announces CIT Group Inc. Credit Event

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) - On November 10, 2009, the Calculation Agent for Global DiSCS Trust 2004-1 (the "Trust") notified the Trust of a Credit Event in respect of CIT Group Inc. (the "Company"). The Trust's unitholders have an exposure to the Company of 0.50% of the Reference Portfolio. The Calculation Agent will carry out the valuation process in accordance with the terms of the Trust's Declaration of Trust and this process should be completed on or about February 10, 2010.

The Trust units benefit from the protection of a synthetic first-loss tranche currently equal to 2.456% of the Reference Portfolio. The initial 4.10% first-loss tranche was reduced as a result of the Credit Events involving Delphi Corporation, Quebecor World Inc., Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, The Rouse Company, Idearc Inc. and General Motors Corporation.

Unitholders' entitlement to receive $25.00 per Trust unit on December 20, 2009 (the "Maturity Date") and quarterly distributions of $0.325 per unit will not be directly affected by this Credit Event. However, if the future Cumulative Net Loss Amount resulting from Credit Events exceeds the remaining first-loss tranche, the Trust's unitholders will receive less than the original subscription price of $25.00 per Trust unit upon the Maturity Date.

Trading information

The Trust units are listed for trading on the Toronto Stock Exchange under the symbol DST.UN. The latest published net asset value of the Trust, as of November 10, 2009, was $24.40 per unit.

Sentry Select Capital Inc.

Sentry Select Capital Inc. ("Sentry Select") is a Canadian wealth management company that offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates.

Capitalized terms used herein but not defined have the meaning ascribed to them in the Trust's final prospectus.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "intend," "will" and similar expressions to the extent they relate to Sentry Select. The forward-looking statements are not historical facts but reflect Sentry Select's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including, but not limited to, the proposed timing for the completion of the valuation process noted above. Although Sentry Select believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.




Sentry Select Capital Inc.
The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 861-8729
Fax: (416) 364-5615
Updated Tuesday, November 17, 2009 11:12 am TWN, By Tomoeh Murakami Tse, The Washington Post

CIT's plight raises new bailout questions
A year ago, the financial system was tottering and government officials arranged a US$2.3 billion emergency cash infusion into CIT Group, a troubled lender to small businesses.

Today, CIT is in bankruptcy court, and the taxpayers' investment is on the brink of being wiped out. It would be the largest loss so far from the government's massive rescue of the financial system, but it isn't likely to be the last.

Officials poured about US$700 billion into investments in scores of companies, from giants like the automaker General Motors and the insurer American International Group to smaller regional banks. Of them, 46 had failed to make required dividend payments to the government as of the end of September, according to the inspector general overseeing the program.

Last week, United Commercial Bank of San Francisco failed, becoming the first recipient of the Troubled Assets Relief Program, or TARP, to collapse. The cost to taxpayers: US$299 million.

Analysts expect more bailed-out firms to fail in the months ahead. Others may survive but will struggle to repay the government. Steven Rattner, the former head of the government's efforts to bail out the auto industry, said recently that US$20 billion of the US$50 billion public investment in GM is unlikely to be repaid. Meanwhile, AIG is dismantling itself, selling healthy subsidiaries at what critics say are bargain prices in an all-out effort to get cash to repay the government. About US$400 billion of federal investments remain in the corporate sector, much of it channeled through TARP. Critics of the program say losses were inevitable, in many cases.

Bankers, lawmakers, state banking regulators and oversight committees have faulted federal officials for providing funds to firms that were so sick that they couldn't recover and for failing to be open about how recipients were chosen. Some critics have also attacked the government for the types of investments they made.

In addition, many investments were in the form of preferred shares, which pay a high dividend but get wiped out in bankruptcy, even reorganizations in which the firms survive. That's what's happening with CIT.

The government provided assistance to CIT only after the Fed determined that the company would be “well capitalized” by regulatory standards by the time it became a bank holding company. But that didn't mean that it had enough money to ride out its snowballing losses, even with federal help. And while the Treasury Department's stated goal was to help CIT keep making loans, in practice lending all but evaporated afterwards.

“It was very obvious as of a year and a half ago that it was in dire need of a substantial amount of more capital,” said Sean Egan, co-founder of the independent credit rating firm Egan-Jones, who had questioned the move at the time. “The US$2.3 billion was wasted. They didn't save CIT, and they didn't save the taxpayers' money.”

Bert Ely, an banking analyst in Alexandria, Va., said CIT should have been organized under bankruptcy in December because its business model — borrowing money cheaply and lending it out again to others — was “basically broken.” With the company's credit ratings tumbling, its cost of borrowing had reached a point where CIT could no longer be profitable, he said.

“The problems of CIT would have been confronted earlier,” Ely said. “There wouldn't have been a lot of the turmoil in CIT and among CIT customers that we've seen. But in the meantime, it's kind of rotted on the vine. ... CIT is one particular TARP investment for which there ought to be a lot of questions asked.”

CIT is now hoping to emerge next month as a newly restructured company through what is known as a prepackaged bankruptcy, with minimal harm to its customers and bondholders. The taxpayer investment, however, does not receive the same protection.

“We all hoped that all of the TARP investments would be good, and the taxpayers certainly have gotten a very strong return on many of those investments, but it's inevitable when you invest in hundreds of institutions, that some of them are going to go bad,” said Phillip Swagel, who served as assistant Treasury secretary for economic policy until January.

Swagel, who was a member of the five-person committee that vetted each application for bailout funding, said CIT had been approved on the merits of its application and not because it was deemed vital to the health of the financial system.

But Alan Blinder, a Fed vice chairman during the Clinton administration, said the case for CIT was hardly clear-cut.


http://www.chinapost.com.tw/business/company-focus/2009/11/1…
Veritec Enters Into Agreement WIth CIT
Published: 01-Dec-2009
To offer secure prepaid debit cards to consumers in retail locations

Veritec, a developer of mobile banking debit card solutions, said that its subsidiary, Veritec Financial Systems has entered into a memorandum of agreement with Cities in Touch (CIT) to integrate VTFS’ mobile banking software platform with CIT’s ATM and debit card issuing kiosk systems.

In addition to serving as an ATM machine, CIT’s kiosk systems enable consumers to securely cash checks, pay bills, transfer money and obtain pay day loans. By integrating VTFS’ and CIT’s respective systems, consumers will benefit by being issued secure reloadable debit cards that may be used at most ATM machines and when making retail purchases. VTFS said that consumers will be able to turn their debit cards on and off with their mobile phones.

Van Tran, executive chairman of Veritec, said: "Veritec is very pleased to enter into this agreement with Cities in Touch. CIT provides convenient as well as special and important services to members of our community, and Veritec is able to help these consumers by providing a reloadable and highly secure financial product that is a better and safer alternative to cash."

Randy Dodd, president of CIT, said: “Veritec’s prepaid card products and services will enable CIT to be in a position to offer new and exciting products and services to its customers. It has also provided CIT with a service that helps us reduce the need for keeping a significant amount of cash in our kiosks and this helps make CIT’s operations and the kiosk owners’ operations more secure.”


http://cards.banking-business-review.com/news/veritec_enters…
10.12.09 CIT-Bank verläßt nach nur fünf Wochen die Insolvenz
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Insolvenzverfahren
Rubrik: Insolvenzverfahren


Die US-amerikanische CIT Bank wurde nach nur fünf Wochen vom zuständigen Insolvenzgericht in New York aus der Insolvenz entlassen. Gleichzeitig genehmigte das Insolvenzgericht den Umbau der Bank.



CIT ist der wichtigste Kapitalgeber für kleine und mittlere Unternehmen. Bereits vor dem Zusammenbruch am 1. November 2009 war CIT massiv von der amerikanischen Regierung gestützt worden.



Die neue CIT will ihre Schulden durch Verzichte der Gläubiger um 10,5 Milliarden Dollar reduzieren. Experten rechnen damit, dass auch für den amerikanischen Staat die geflossenen Gelder in Höhe von 2,33 Milliarden Dollar (1,57 Milliarden Euro) verloren sind.
CIT Group meldet Rücktritt von COO
New York (aktiencheck.de AG) - Der amerikanische Finanzdienstleister CIT Group Inc. (ISIN US1255811085/ WKN 663204)
Leser des Artikels: 261

New York (aktiencheck.de AG) - Der amerikanische Finanzdienstleister CIT Group Inc. (ISIN US1255811085/ WKN 663204) teilte am Montag mit, dass sein President und COO Alexander T. Mason das Unternehmen zum 26. Februar 2010 verlassen wird.



Der Mittelstandsfinanzierer, der Anfang November Gläubigerschutz nach Chapter 11 beantragt hatte und diesen vor kurzem verlassen hat, gab keine Gründe für den Rücktritt Masons an. Auch hinsichtlich eines möglichen Nachfolgers wurde nichts kommuniziert.

Mason wurde im Juni 2008 zum COO bestellt. Davor war er Vice Chairman und COO bei der Mercantile Bankshares Corp.

Die Aktie der CIT Group schloss gestern an der NYSE bei 31,35 Dollar. (02.02.2010/ac/n/a)
CIT Group bestellt ehemaligen Merrill Lynch-Chef zum Chairman und CEO

New York (aktiencheck.de AG) - Der amerikanische Finanzdienstleister CIT Group Inc. (ISIN US1255811085/ WKN 663204)
Leser des Artikels: 252

New York (aktiencheck.de AG) - Der amerikanische Finanzdienstleister CIT Group Inc. (ISIN US1255811085/ WKN 663204) teilte am Sonntag mit, dass sein Board John A. Thain mit sofortiger Wirkung zum Chairman und CEO bestellt hat.



Der Mittelstandsfinanzierer, der Anfang November Gläubigerschutz nach Chapter 11 beantragt hatte und diesen vor kurzem verlassen hat, wird demnach vom ehemaligen Chairman und CEO der Investmentbank Merrill Lynch geführt. Thain tritt dabei die Nachfolge von Peter J. Tobin an, der zuletzt als Interims-CEO von CIT fungierte. Tobin bleibt indes Director des Unternehmens, hieß es.

Vor seiner Tätigkeit bei Merrill Lynch bekleidete Thain das Amt des CEO der New York Stock Exchange. Die meiste Zeit seiner Karriere verbrachte der Manager bei der US-Bankgesellschaft Goldman Sachs Group Inc. (ISIN US38141G1040/ WKN 920332), wo er bis zum President und COO aufstieg.

Die Aktie der CIT Group schloss am Freitag an der NYSE bei 30,75 Dollar. (08.02.2010/ac/n/a)
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