Posts Tagged ‘CIT Group Inc.’

CIT Files Chapter 11, 76.5% Of Creditors Vote For Prepack

CIT Files Chapter 11, 76.5% Of Creditors Vote For Prepack (90% of 85% Voting)

Courtesy of Tyler Durden

NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today announced that, with the overwhelming support of its debtholders, the Board of Directors voted to proceed with the prepackaged plan of reorganization for CIT Group Inc. and a subsidiary that will restructure the Company’s debt and streamline its capital structure.

Importantly, none of CIT’s operating subsidiaries, including CIT Bank, a Utah state bank, will be included in the filings. As a result, all operating entities are expected to continue normal operations during the pendency of the cases.

All classes voted to accept the prepackaged plan and all were substantially in excess of the required thresholds for a successful vote. Approximately 85% of the Company’s eligible debt participated in the solicitation, and nearly 90% of those participating supported the prepackaged plan of reorganization.

Similarly, approximately 90% of the number of debtholders voting, both large and small, cast affirmative votes for the prepackaged plan. The conditions for consummating the exchange offers were not met.

Accordingly, CIT’s Board of Directors approved the Company to proceed with the voluntary filings for CIT Group Inc. and CIT Group Funding Company of Delaware LLC with the U.S. Bankruptcy Court for the Southern District of New York (“the Court”).

Due to the overwhelming and broad support from its debtholders, the Company is asking the Court for a quick confirmation of the approved prepackaged plan. Under the plan, CIT expects to reduce total debt by approximately $10 billion, significantly reduce its liquidity needs over the next three years, enhance its capital ratios and accelerate its return to profitability.

“The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy,” said Jeffrey M. Peek, Chairman and CEO. “We are enormously appreciative of the extraordinary support we have received from our many constituencies. This market-based solution allows CIT to enter into the reorganization process well-prepared and positioned for a swift emergence. I want to thank our customers for their support and express my gratitude to our employees whose dedication and hard work are crucial to the future of CIT. We also acknowledge our constructive working relationship…
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No bailout for CIT

More on CIT Group.  Courtesy of Edward Harrison at Credit Writedowns.

CIT GroupNo bailout for CIT

This comes from the Wall Street Journal:

Small-business lender CIT Group Inc. said "there is no appreciable likelihood" that it will receive fresh government support, suggesting that the company might instead seek to file for bankruptcy protection.

In a written statement issued after the market close, the company said it was "evaluating alternatives."

The company has been locked in talks with government officials and regulators during the past week in a bid to prop up its business. The reason for the lack of success in the negotiations couldn’t be immediately learned.

I’ll tell you what I think it is: CIT is not a well-connected Money-center bank.  It is merely a lender to small-and medium sized businesses.  So, that makes the Obama Administration opposed to giving it a helping hand.  Only the big banks deserve bailouts, apparently. Just ask Chrysler, GM or California. CreditSights says much the same thing.

"We believe not supporting the lender could carry with it the stigma that the government was more willing to bail out Wall Street than small businesses," analysts at research firm CreditSights wrote Wednesday.

Meanwhile, the beleaguered financial supermarket Citigroup is near a ‘secret deal’ with regulators about how to increase regulatory scrutiny of the company.  See the FT story here.

Despite my snarkiness, I do agree that CIT should fail. No more bailouts. So, the Obama Administration is doing the right thing.  But, of course, these decisions are always fraught with risk.  Consider this Obama’s Lehman Brothers.  Right now, all is well though, as today was a major market melt-up despite the halt in CIT shares this afternoon.

Below are some other takes on the same:

US stock and bond futures little changed after CIT statement – Reuters

CIT Says U.S. Support Unlikely, Studies Options With Advisers – Bloomberg

Obama Administration Denies Aid to CIT Group – Washington Post

CIT’s press release on the matter were pretty brief:

CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today announced that it has been advised that there is no appreciable likelihood of additional government support being provided over the near term.

The Company’s Board of Directors and management, in consultation with its


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Global inequality is on the rise - but at vastly different rates across the world

 

Global inequality is on the rise – but at vastly different rates across the world

Courtesy of Antonio SavoiaUniversity of Manchester

The gap between rich and poor is growing. shutterstock.com

Inequality is rising almost everywhere across the world – that’s the clear finding of the first ever World Inequality Report. In particular, it has grown fastest in Russia, India and China – places where this was long suspected but there was little accurate data to paint a reliable picture.

Until now, it was actually very difficult to compare inequality in different regions of the world because of sparse ...



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Zero Hedge

Facebook Really Is Bad For You, Researchers Say

Courtesy of ZeroHedge. View original post here.

Apparently, Chamath Palihapitiya was on to something when he revealed earlier this week that he felt “tremendous guilt” for the role that he played in Facebook’s success as a social-media company.

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Tape Reading - Dow Jones Price Waves

Courtesy of Read the Ticker.

This is a continuation of price wave analysis.

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RTT Volume wave analysis like this helps the retail investor find price action that is true. The reference to 'tape reading' is by the definition of Richard Wyckoff (section 5M of the Wyckoff Course), you can learn more about RTT Volume Wave here.





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Attention Contrarians: This Analyst Says JD.com Set Up Could Be In Your Favor

Courtesy of Benzinga.

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Biotech

Designer proteins that package genetic material could help deliver gene therapy

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Designer proteins that package genetic material could help deliver gene therapy

Courtesy of Ian HaydonUniversity of Washington

Delivering genetic material is a key challenge in gene therapy. Invitation image created by Kstudio, CC BY

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Not A Bubble?

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Tax Bill May Spark Exodus From High-Tax States

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The following is a summary of our recent podcast, “Exodus – The Major Wealth Migration,” which can be listened to on our site here on on iTunes here.

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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

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Brazil; Waterfall in prices starting? Impact U.S.?

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Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

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