November 2nd, 2009
10:00 AM ET

CIT files for 5th largest U.S. bankruptcy

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CNN Money

CIT Group Inc., one of the nation's leading funders of small and medium-sized businesses, filed for the fifth largest bankruptcy by assets in U.S. history Sunday as part of a reorganization plan that has the support of an overwhelming majority of debtholders.

In a statement, the company said it is asking the U.S. Bankruptcy Court for the Southern District of New York for a quick approval of the prepackaged plan. CIT said none of its operating subsidiaries would be affected by the filing, allowing them to continue operations.

"The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," said CIT (CIT, Fortune 500) chairman Jeffrey M. Peek.

In the bankruptcy filing, CIT said it had $71 billion in assets and $64.9 billion in liabilities. Only Lehman Brothers, Washington Mutual, Worldcom and General Motors had more in assets when they filed for protection.

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CNNMoney.com assistant managing editor Mark M. Meinero, reporter David Ellis and Fortune senior writer Colin Barr contributed to this report.

Filed under: Economy • Finance • General Motors
soundoff (2 Responses)
  1. mary

    A very useful and complete article. I hope people will append to it..Car Insurance

    November 20, 2010 at 4:34 am |
  2. Joanne Pacicca

    Is this another "bail-out application?"

    November 2, 2009 at 12:17 pm |

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