According to CNBC, CIT Group’s (CIT) talks with different lenders have transitioned primarily to debtor-in-possession loan, suggesting that although talks are currently continuing on financing CIT outside of bankruptcy, chances the lender will file at some point for chapter 11 are highly probable. Having said that, CIT talks with potential financiers for short-term financing in the range of $2 to $3 billion are ongoing. And as Reuters reported earlier, the co. is still in talks with bondholders for a debt-to-equity swap.
So basically what we know for sure so far is that although the situation remains fluid, a Friday CIT bankruptcy filing seems unlikely.
