CIT Group yesterday revealed it had won more time to restructure and avert a near-term bankruptcy filing, saying a tender offer for $1bn of the troubled US small business lender's debt succeeded by a small margin.
CIT now has about two weeks to file plans with the Federal Reserve Bank of New York on how the lender intends to maintain its capital requirements, and must provide the regulator with more detailed restructuring plans by early October.
The company must also provide restructuring plans to a consortium of bondholders that last month agreed to give CIT $3bn of rescue financing after the lender failed to secure a second government bail-out. The rescue funds were contingent on the success of CIT's tender offer for $1bn of its bonds maturing yesterday.