CIT Looks Set to File for Bankruptcy
Published: Wednesday, 15 Jul 2009 | 10:33 PM ET Text Size
By: David Faber
CNBC Anchor and Reporter
I can report that CIT is likely to file bankruptcy tomorrow, though the situation remains fluid, according to a source close to the company.
The company has been taken by surprise at the failure of talks with its regulators to craft a solution over the last three weeks and is now pursuing a plan that is likely to include a chapter 11 filing on Friday.
CIT [CIT 1.64 0.03 (+1.86%) ] is a lender to hundreds of thousands of small and mid-sized U.S. businesses, said on Wednesday that bailout talks with the government had ended, a development that could ultimately drive the company into bankruptcy.
CIT Talks Fall Apart, Bankruptcy Filing Likely Friday
The news follows last-ditch talks in which Treasury officials had expressed concern about a worsening liquidity crunch at the 101-year old lender and indications that government aid would not put it on a path to recovery.
Published: Wednesday, 15 Jul 2009 | 10:33 PM ET Text Size
By: David Faber
CNBC Anchor and Reporter
I can report that CIT is likely to file bankruptcy tomorrow, though the situation remains fluid, according to a source close to the company.
The company has been taken by surprise at the failure of talks with its regulators to craft a solution over the last three weeks and is now pursuing a plan that is likely to include a chapter 11 filing on Friday.
CIT [CIT 1.64 0.03 (+1.86%) ] is a lender to hundreds of thousands of small and mid-sized U.S. businesses, said on Wednesday that bailout talks with the government had ended, a development that could ultimately drive the company into bankruptcy.
CIT Talks Fall Apart, Bankruptcy Filing Likely Friday
The news follows last-ditch talks in which Treasury officials had expressed concern about a worsening liquidity crunch at the 101-year old lender and indications that government aid would not put it on a path to recovery.