CIT Group To Emerge From Bankruptcy On Thursday

CIT Group (PK: CITGQ) aims to emerge from bankruptcy on Thursday following a U.S. Bankruptcy Court's approval of its prepackaged reorganization plan.

CIT's plan calls for a $10.5 billion reduction in its debt load and to have some debt obligations pushed back three years. The company filed for bankruptcy protection on November 1.

CIT will get a new listing, though its business will essentially be recouping payment on outstanding loans written down to about $34 billion. Bondholders should expect to recover 80 cents or less on the dollar for their investments.