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CIT aims to avoid bankruptcy

Associated Press / July 20, 2009
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WASHINGTON - CIT Group Inc.’s board was meeting last night to discuss options that would allow the lender, which got $2.3 billion of bailout money in December, to avoid bankruptcy, a person briefed on the talks said.

The Wall Street Journal and Reuters reported the New York company was nearing a deal with bondholders for $3 billion in emergency funding.

CIT has been negotiating with key bondholders in an attempt to avoid a bankruptcy filing. Jeffrey Peek, chairman and chief executive, was actively involved in the talks, according to the person.

CIT has been scrambling to raise $2 billion to $4 billion since the government refused to bail out the company. Rescue talks with government regulators broke off late Wednesday.

CIT faces $7.4 billion in debt due in the first quarter of 2010.