CIT Group (CITGQ) said today that its prepackaged plan of reorganization was approved by the United States Bankruptcy Court for the Southern District of New York. The co also indicated that expects to emerge from bankruptcy on December 10, 2009.
Implementation of the Plan reduces CIT’s total debt by approximately $10.5 billion while deferring debt maturities for three years and also enhances capital ratios to levels that exceed regulatory requirements. With its strengthened financial position, CIT will now focus on its business restructuring and the execution of a smooth leadership transition.
CIT continues to make progress on the reconstitution of its Board of Directors. Ultimately, CIT’s new Board will consist of 13 Directors, including seven new independent Directors identified by CIT’s debtholders, five continuing directors and the new Chief Executive Officer of CIT.
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