CIT: Court Accepts Prepackaged Reorganization Plan, Emergence From Chapter 11 Expected In Days

CIT Group Inc. announced today that its prepackaged plan of reorganization was confirmed by the United States Bankruptcy Court for the Southern District of New York.
CIT also indicated that it anticipates emerging from bankruptcy on December 10, 2009.
“CIT’s successful emergence establishes a strong foundation for the future of the Company,” said Jeffrey M. Peek, Chairman and CEO of CIT. “As a result of the overwhelming support for our Plan, CIT now has a stronger capital structure and improved liquidity profile. Our Board of Directors and management team now have the time and flexibility to execute the balance of CIT’s restructuring strategy, including maximizing the value of its existing assets and optimizing the business model.
Implementation of the Plan reduces CIT’s total debt by approximately $10.5 billion while deferring debt maturities for three years and also enhances capital ratios to levels that exceed regulatory requirements, according to the company.
CIT indicated that it continues to make progress on the reconstitution of its Board of Directors. According to the company, CIT’s new Board will consist of 13 Directors, including seven new independent Directors identified by CIT’s debtholders, five continuing directors and the new Chief Executive Officer of CIT.
As previously reported, CIT has engaged Spencer Stuart, an internationally recognized search firm, to assist in identifying, interviewing and selecting the Lender Steering Committee director nominees and the company indicated that it is continuing its search for a new CEO.