CIT Group Receives $4.5 Billion To Fund Restructuring (CIT)

CIT Group (NYSE: CIT) announced that they have received a $4.5 billion loan from investors and creditors. The purpose of the loan was to avoid bankruptcy through restructuring their operations while reducing their debt. Prior to this loan, CIT has already received a $3 billion loan last summer financed by the same group.

Their restructuring plan is designed to reduce their near term debt by $5.7 billion and has since sweetened the offer twice. Even if the restructuring plan succeeds, CIT may still need to file for bankruptcy failure protection.

Shares of CIT have since risen to 17.7% topping at $1.17 a share, leveling at around $1.09.