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Friday, March 29, 2024

CIT Sees $0.06-$0.37 Recovery On Unsecured Claims If It Files For Bankruptcy

Courtesy of Tyler Durden

Some Mutual Assured Destruction, Friday edition, courtesy of CIT: $35 billion in estimated General Unsecured Claims recovering between $2 and $13 billion if company is “forced” to file for bankruptcy.

Without an approved restructuring plan, the Company will likely file for bankruptcy without the benefit of a plan of reorganization and stakeholders will lose significant value.

 

Impacts include:

  • Substantial damage to the franchise
  • Inability to insulate valuable operating businesses from the proceedings
  • Increased risk of seizure of CIT Bank
  • Uncertainty and constraints with respect to liquidity
  • Significant bankruptcy related expenses
  • Lengthy process in court
  • Estimated recovery value for general unsecured claims in a accelerated liquidation is  between 6 – 37 cents per $1.00

Full CIT Management presentation below:

 

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