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New York - Biggest Bankruptcy: CIT Files For Chapter 11

Published on: November 1, 2009 03:58 PM
By: AP
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New York - Lender CIT Group has filed for Chapter 11 bankruptcy protection, a potential blow to the thousands of small and mid-sized businesses that rely on the company for loans to keep their operations afloat.

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CIT made its filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT says the majority of its bondholders have approved a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.

CIT’s move will wipe out current holders of its common and preferred stock, likely meaning the U.S. government will lose the $2.3 billion it sunk into CIT last year to prop up the ailing company.

The Chapter 11 filing is one of the biggest in U.S. corporate history


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Read Comments (19)  —  Post Yours »

1

 Nov 01, 2009 at 04:26 PM Anonymous Says:

Oh vie, now comes the stock market.

2

 Nov 01, 2009 at 05:20 PM Anonymous Says:

To those of you who didn't lighten up your stock holdings or sell out entirely late last week when the Market started tanking, Monday AM is going to be a very bad day. Probably too late now so hope the losses will not be as bad as black monday in 87.

3

 Nov 01, 2009 at 05:54 PM Asher Buchwalter Says:

Reply to #2  
Anonymous Says:

To those of you who didn't lighten up your stock holdings or sell out entirely late last week when the Market started tanking, Monday AM is going to be a very bad day. Probably too late now so hope the losses will not be as bad as black monday in 87.

Despite of the predicted stock market baisse those sitting at the through will keep on stuffing their pocket with honorably earned compensation

4

 Nov 01, 2009 at 05:41 PM Asher Buchwalter Says:

How about that, the market "adjusted" and the gamblers lost. How about that free market adjustment and Atlas Shrugged hopefully not to the detriment of the tax payer. Las Vegas on Wall Street and there is more to come I am sure despite of the conservative mantra.

5

 Nov 01, 2009 at 05:58 PM joey Says:

stock market is gambling its time for yidden to start earning a honest living with hard work

6

 Nov 01, 2009 at 06:26 PM Honest living Says:

Reply to #5  
joey Says:

stock market is gambling its time for yidden to start earning a honest living with hard work

and hard work ... this is a lost art.
Flipping houses is much easier.

7

 Nov 01, 2009 at 06:36 PM Anonymous Says:

Reply to #5  
joey Says:

stock market is gambling its time for yidden to start earning a honest living with hard work

Some of us are retired and don't get very much from social security and whatever we have in the bank is getting next to nothing in interest so we need something to supplement the money we get in order to pay our bills. Please stop assuming that all people who invest in the market are greedy pigs looking for an easy buck. Times are hard right now and many of us are living bare to the bone just to get by.

8

 Nov 01, 2009 at 06:37 PM Get off your high horse. Says:

Reply to #5  
joey Says:

stock market is gambling its time for yidden to start earning a honest living with hard work

Most investors are people who work hard and want to invest their earnings to make additional money. It isn't gambling if you have a clue what you are doing and many people have made lots of money. You should only invest when you can afford to lose because the nature of the market is that you can't win all the time.

9

 Nov 01, 2009 at 07:03 PM Asher Buchwalter Says:

Reply to #8  
Get off your high horse. Says:

Most investors are people who work hard and want to invest their earnings to make additional money. It isn't gambling if you have a clue what you are doing and many people have made lots of money. You should only invest when you can afford to lose because the nature of the market is that you can't win all the time.

Yes you can win if those who handle your money don't break the fiduciary trust

10

 Nov 01, 2009 at 08:42 PM Anonymous Says:

Oy vay,, didnt I hear that they were saying the recession is over????

11

 Nov 01, 2009 at 06:53 PM Anonymous Says:

market is manipulated.no one has an idea of where its going tomorrow

12

 Nov 01, 2009 at 10:43 PM Anonymous Says:

You people need to get a clue. CIT is a worthless company whose shares were trading in the one dollar range for over a month. Everyone who knows anything about CIT knew it would declare bankruptcy. This is not a state secret.

The market will not crash or confirm any of the doomsday scenarios you paranoid right-wing folks love to dwell on. As I type the Dow futures are up 43 points. So much for 1987, or was that 1929.

Instead, you clowns will lose your pants shorting stocks and betting against American markets, while the rest of us profit from your stupidity.

13

 Nov 02, 2009 at 04:32 AM dont get it Says:

i dont understand how the stock market is gaining anything.
jobs are being lost, unemployment is growing
jobs are being outsourced
military spending is berzerk that army is risking bankruptcy by 2015 or so if these wars of our continue
we produce 0 and in the coming years will somehow manage to produce even less, especially as the global warming/carbon foot print scare sends more jobs out and the few american agricultural jobs left are sent to china
the rich are only getting richer and the middle class is going poor
most american born businesses are now owned by foreign companies
The government is pumping out billions of dollars that is created out of thin air to bail out CEOs who.
debt is growing ever higher and since banks and not congress control our monetary system american are ever paying our growing national debt. because money can be printed without being back.
now i ask you how on earth is the stock market gaining? it hasnt actually its been pretty much stagnant since 1999.
this is exactly what happened to germany post-ww1 and prior to the depression
history repeats.
btw lets not forget democracy is now for sale, as mike bloomberg runs for his 3rd term

14

 Nov 02, 2009 at 01:37 AM Anonymous Says:

Reply to #7  
Anonymous Says:

Some of us are retired and don't get very much from social security and whatever we have in the bank is getting next to nothing in interest so we need something to supplement the money we get in order to pay our bills. Please stop assuming that all people who invest in the market are greedy pigs looking for an easy buck. Times are hard right now and many of us are living bare to the bone just to get by.

First of all I'm 63 and all I have to say is that's what you get for retiring while you were still healthy and able. The only excuse to stop working for your living is illness. If you can walk the mall, play golf, go to jazzercize class etc, etc, you can work. Not only that, you'll be healthier, won't need to worry about money for meds and won't get alzheimers.
Did Avraham Avinu or Moshe Rabbenu retire? How about David Ha Melekh, Shlomo or Ram Bam?
Now you've forfeited your place in the workplace for what you thought was an easy life so reap the consequences wallowing in you mud holes. You ARE greedy pigs if you could be working and aren't, expecting my grandchildren to fund your Social Security.
Maybe you can find some redemption by putting your talents, acquired knowledge and hopefully modicum of wisdom to use in some volunteer capacity.

15

 Nov 02, 2009 at 11:41 AM poster #7 Says:

Reply to #14  
Anonymous Says:

First of all I'm 63 and all I have to say is that's what you get for retiring while you were still healthy and able. The only excuse to stop working for your living is illness. If you can walk the mall, play golf, go to jazzercize class etc, etc, you can work. Not only that, you'll be healthier, won't need to worry about money for meds and won't get alzheimers.
Did Avraham Avinu or Moshe Rabbenu retire? How about David Ha Melekh, Shlomo or Ram Bam?
Now you've forfeited your place in the workplace for what you thought was an easy life so reap the consequences wallowing in you mud holes. You ARE greedy pigs if you could be working and aren't, expecting my grandchildren to fund your Social Security.
Maybe you can find some redemption by putting your talents, acquired knowledge and hopefully modicum of wisdom to use in some volunteer capacity.

Wow, all this ugliness because I said I was retired. I didn't give out my life story so you have no idea about me other than the fact that I collect social security yet you feel obligated to spew this ugly garbage at me. Since you're 63 I figure you'll be expecting to retire eventually and your social security will be funded by your grandchildren. I hope your grandchildren don't say such nasty things to you because it's one thing to hear an anonymous stranger call you such names but it's quite another to hear that from family. Then again maybe you and your grandchildren will luck out and you'll die before you get to collect a penny.

16

 Nov 02, 2009 at 01:18 PM Anonymous Says:

You're the one who said you aren't a greedy pig. I disagree. YOu confirm it by wishing me dead. Now THAT is a HORRIBLE thing to say.
But I did qualify my statement saying illness is THE one reason that justifies not working by choice. being terminated from a job and not finding one also may qualify but you should be doing every thing you can to find work. If you are unwell why didn't you say that? If you were laid off why didn't you say that? Those are not "retirement" at any age. You said you're retired period. To me that is a choice to have leisure time.

Quite honestly I'm tired of hearing people like my in-laws make the same complaints you did but yet they can take trips to the mountains for several days. They live in a large house they don't need and are finding hard to maintain but at 85, they do all their own gardening on 2 acres, their cleaning, shopping and cooking by themselves. My father-in-law dug up the septic field by hand at 75 and with a bum knee.
I think that's great but again, when they complain about not having money, yet are able to do all those things, I tune out.

17

 Nov 02, 2009 at 05:24 PM anonymous Says:

Reply to #13  
dont get it Says:

i dont understand how the stock market is gaining anything.
jobs are being lost, unemployment is growing
jobs are being outsourced
military spending is berzerk that army is risking bankruptcy by 2015 or so if these wars of our continue
we produce 0 and in the coming years will somehow manage to produce even less, especially as the global warming/carbon foot print scare sends more jobs out and the few american agricultural jobs left are sent to china
the rich are only getting richer and the middle class is going poor
most american born businesses are now owned by foreign companies
The government is pumping out billions of dollars that is created out of thin air to bail out CEOs who.
debt is growing ever higher and since banks and not congress control our monetary system american are ever paying our growing national debt. because money can be printed without being back.
now i ask you how on earth is the stock market gaining? it hasnt actually its been pretty much stagnant since 1999.
this is exactly what happened to germany post-ww1 and prior to the depression
history repeats.
btw lets not forget democracy is now for sale, as mike bloomberg runs for his 3rd term

Democracy is not for sale what has been sold is honesty and the fiduciary trust in fulflling the honest stewardship of money entrusted to a company. It has been replaced by the Gipper's mantra that is profits ueber alles above all and private market oriented institution are free of anybody's control and don't require transparency. This type of mentality will destroy democracy and a free nation.

18

 Nov 02, 2009 at 06:15 PM Anonymous Says:

Reply to #17  
anonymous Says:

Democracy is not for sale what has been sold is honesty and the fiduciary trust in fulflling the honest stewardship of money entrusted to a company. It has been replaced by the Gipper's mantra that is profits ueber alles above all and private market oriented institution are free of anybody's control and don't require transparency. This type of mentality will destroy democracy and a free nation.

Hear! Hear! The middle class has suffered for nearly 30 years because of this thinking. It's ALL about the money.

19

 Nov 03, 2009 at 08:51 AM Anonymous Says:

Reply to #5  
joey Says:

stock market is gambling its time for yidden to start earning a honest living with hard work

that's what the market is for... duh!

20

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