Judge Allows CIT to Borrow Up to $500 Million November 23, 2009, 4:32 pm
The CIT Group, a leading commercial lender, won bankruptcy court approval on Monday to borrow as much as $500 million to issue letters of credit that guarantee its debt.
Judge Allan Gropper of Federal Bankruptcy Court in Manhattan granted CIT?s request to approve the loan from a group of banks led by Bank of America, Bloomberg News reports. Judge Gropper approved interim borrowing of $125 million on the loan earlier this month.
Judge Gropper also approved CIT?s retention of law firms and consultants, including Sullivan & Cromwell and Evercore Partners. None of CIT?s requests were opposed by creditors.
CIT filed for bankruptcy on Nov. 1, attributing its need to seek Chapter 11 protection to subprime mortgages and tightening credit markets. CIT listed $71 billion in assets and $64.9 billion in debt.
The lender plans to exit bankruptcy next month.
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