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CIT Group 'set for bondholder deal'

Published on 20 Jul 2009 under category: legal

A commercial finance firm has been saved from bankruptcy thanks to a bondholder agreement, it has been reported.

The CIT Group is thought to have secured a $3 billion (£1.8 billion) funding agreement after a meeting last night (July 19th), bankruptcy solicitors may be interested to hear.

Major shareholders are said to be behind the rescue loan, which took place after the company had been in discussions with several major banks.

The possibility of a government bailout for the small to medium-sized business lender has already been ruled out.

David Hendler, an analyst for CreditSights, commented: "We still think it is a losing effort in the intermediate term, although some bondholders end up better than others with this structure."

In other news which may interest bankruptcy solicitors, it was revealed that a businessman who appeared on Channel 4's The Secret Millionaire has debts of around £30 million.

Property developer Chek Whyte was last week reported to have entered talks with insolvency specialists.