Related Quotes Sym. Price Chg. CITGQ Trade News 0.193 -0.007 CIT Announces Updated Solicitation Results for Its Prepackaged Plan of Reorganization
Nov 19, 2009 10:00:42 (ET)
NEW YORK, Nov 19, 2009 (BUSINESS WIRE) -- CIT Group Inc. (OTC: CITGQ.PK), a leading provider of financing to small businesses and middle market companies, today announced updated results of its solicitation for votes on its voluntary prepackaged plan of reorganization (the "Plan").
The solicitation of votes for Class 7, Canadian Senior Unsecured Notes, expired on November 5, 2009. Approximately 89% of holders by outstanding principal amount participated in the solicitation, of which nearly 100% in principal amount and 92% in number of votes cast supported the Plan.
Similarly, the solicitation of votes for Class 8, Senior Unsecured Notes maturing after 2018, expired on November 13, 2009. Approximately 74% of holders by outstanding principal amount participated in the solicitation, of which approximately 96% in principal amount and 93% in number of votes cast supported the Plan.
In the aggregate, approximately 83% of the Company's eligible debt participated in the solicitation, of which approximately 92% in principal amount and 88% in number of votes cast supported the Plan. Consistent with the Company's previous announcement on November 1, 2009, all classes entitled to vote on the Plan voted to accept the Plan and all were substantially in excess of the required thresholds for a successful vote.
The Company also announced it is giving eligible holders of Class 8 Long-Dated Senior Note Claims who did not vote to accept the Plan the opportunity to elect impaired treatment under the Plan and to receive new notes and common stock on the same terms as Class 8 noteholders who voted in favor of the Plan. The Company is giving these holders until 5:00 pm New York City time on December 4, 2009 to make this optional election. Noteholders must make this election by providing the appropriate instruction to the bank or brokerage through which they hold their Class 8 notes. CIT reserves the right to accept an election after this deadline in the event of a request made prior to the deadline. Holders of Class 8 Long-Dated Senior Note Claims who did not vote to accept the Plan and who do not elect impaired treatment prior to the election deadline will have their existing notes reinstated upon consummation of the Plan. This optional election will have no impact on the voting results with respect to the Plan. For more information contact D.F. King & Co. at (800) 758-5880 or +1 (212) 269-5550.
As previously announced, with overwhelming and broad support from its debtholders, the Company's Board of Directors voted to proceed towards confirmation of the Plan on November 1, 2009. 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 U.S. Bankruptcy Court for the Southern District of New York ("the Court") scheduled a hearing to consider the confirmation of the Plan for Tuesday, December 8, 2009.
Additional information about CIT's restructuring can be found on the Company's Web site, www.cit.com . For access to Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/citgroup . The Company has established a toll-free Supplier Information Line at 800-422-2738 or, if you are calling from outside the U.S. 973-422-3877 and a toll-free Restructuring Information Line for all other interested parties at 866-967-1786 or 310-751-2686.
CIT (OTC: CITGQ.PK) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com
This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "commence," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that the additional facilities do not provide the liquidity that CIT is seeking due to material negative changes to CIT's liquidity from draw down of loans by customers, the risk that CIT is unsuccessful in its efforts to consummate the plan of reorganization. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
SOURCE: CIT Group Inc.
CIT MEDIA RELATIONS: C. Curtis Ritter, 212-461-7711 Vice President Director of External Communications & Media Relations Curt.Ritter@cit.com or CIT INVESTOR RELATIONS: Ken Brause, 212-771-9650 Executive Vice President firstname.lastname@example.org
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