US lender CIT files for bankruptcy as rescue bids fall short

A major New York-based small-business lender, CIT Group, has filed for bankruptcy after a number of attempts to rescue it.

AFP - CIT Group, one of the largest small-business lenders in the United States, said Sunday it is filing for bankruptcy, with its board approving a "prepackaged" restructuring plan to shed 10 billion dollars in debt.

After being rescued from almost certain bankruptcy in July, the company had struggled for months to stay afloat, receiving an emergency loan of 4.5 billion dollars as recently as the past week.

"With the overwhelming support of its debt-holders, the board of directors voted to proceed with the prepackaged plan of reorganization for CIT Group Inc and a subsidiary that will restructure the company's debt and streamline its capital structure," the company said in a statement.

Date created : 2009-11-02