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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Zero Hedge

Amazon Juggernaut Forces Retail Giants To Flee Times Square

Courtesy of ZeroHedge View original post here.

Is Amazon's monopoly of online retailing about to transform Times Square into a ghost town? 

As online sales cannibalize ever more traffic - and sales - from legacy brick and mortar stores, even such traditional foot traffic meccas as Times Square are starting to feel the heat, as brand name retailers flee, leading to what Bloomberg called "turmoil" at one of the world's busiest locations.

Take Gap and Cover Girl, which are among merchants looking to leave stores in the district, where companies have historically been willing to swap high re...



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Phil's Favorites

Russian government resignation: what's just happened and what's in store for Putin beyond 2024?

 

Russian government resignation: what's just happened and what's in store for Putin beyond 2024?

Courtesy of Graeme Gill, University of Sydney

News came from Moscow overnight that the Russian government had resigned, followed by the announcement that Putin would be recommending the current prime minister Dmitry Medvedev be replaced by the head of the tax office, Mikhail Mishustin.

Why has the government resigned, and what does it mean for the future?

Prior to the government’s resignation, President Vladimir Putin announced a series of proposed changes to the constitution to be placed before the people in a future referendum. I...



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Kimble Charting Solutions

Tesla About To Run Out Of Energy Here? Short-Term Peak Possible?

Courtesy of Chris Kimble

Tesla (TSLA) has been screaming higher of late, as very impressive gains have taken place.

Is Tesla about to run out of energy/take a break/experience some selling pressure? A unique price setup is in play, that bulls might want want to be aware of.

This chart applies Fibonacci to the 2016 lows and 2017 highs at each (1). The impressive rally of late has it testing its 161% extension level, based upon those price points.

At the same time, it is hitting its 161% extension level, it finds itself at the top of a 7-year rising channel, with momentum hitting the highest ...



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Insider Scoop

7 Basic Materials Stocks Moving In Wednesday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Mechel, Inc. (NYSE: MTL) shares surged 5.5% to $3.06 during Wednesday's pre-market session.
  • DRDGold, Inc. (NYSE: DRD) stock surged 2.8% to $6.09.
  • Yamana Gold, Inc. (NYSE: AUY) shares rose 1.5% to $3.74.
Losers
  • Harmony Gold Mining Co, Inc. (NYSE: HMY) shares decreased by 1.1% to $3.52 during Wednesday's pre-market session.
  • ...


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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

The new year of 2020 has gold is poised to break out higher. Why is gold going higher? Maybe the FED's economists can explain .... or not.

Maybe these could be on the list:

- FED repo hundreds of billions a day.
- ECB made up tools to keep the European banks solvent.
- A sugar high stock market with Apple Inc and Microsoft looking like Bitcoin 2017.
- The US bond market is NOT confirming a strong stock market.
- Corporate profits have flat lined for 3 years while stocks soared each year.
- Knowing an US election year needs stimulus, and a lower US dollar is a first choice.
- China deal, will have a currency element to make it easier to do business. Lower US dollar.



Gold Gann Angle ...

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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The Technical Traders

Is The Energy Sector Setting Up Another Great Entry?

Courtesy of Technical Traders

Another wild week for oil traders with missiles flying and huge overnight price swings in crude. As we recently pointed out within our current Oil research article, Oil and the Energy sector may be setting up for another great trade.  We recently commented on how the supply/demand situation for oil has changed over the past 20+ years. 

With US oil production near highs and a sh...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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