CIT board clears $3 b rescue plan

CIT board clears $3 b rescue plan

The emergency loan gives some breathing room to refinance maturing debt amid a major liquidity squeeze. It would provide temporary financing to CIT so it could launch a debt exchange offer to free itself from upcoming debt maturities. Under the deal.

CIT’s main bondholders would give CIT $3 billion at an initial interest rate of about 10.5 per cent, according to a New York Times report.

NYT said the funding would provide CIT time to launch an exchange of outstanding debt for equity. By swapping debt for equity stake, CIT would no longer have to pay back the debt.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)