CIT: 88% of Creditors Approve Reorg Plan
November 23, 2009
CIT Group, which filed for bankruptcy on Nov. 1, said 88% of investors solicited in a recent vote supported its prepackaged reorganization plan.
The finance company offered updated results of votes for its reorganization plan on Nov. 19.
CIT expects to reduce total debt by approximately $10 billion. A hearing to consider the confirmation of the reorganization plan is set for Dec. 8.
CIT said a solicitation of votes for Class 7, Canadian senior unsecured notes, expired on Nov. 5.
About 89% of these investors participated in the solicitation and 92% in number of votes cast supported the company’s reorganization plan.
The solicitation of votes for Class 8, senior unsecured notes maturing after 2018, expired on Nov. 13. About 74% of these investors participated in the vote and 93% supported the plan.
In the aggregate, about 83% of the company’s eligible debtholders participated in the solicitation and 88% of votes cast supported the plan.
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