CIT Group Files for Chapter 11 Bankruptcy Protection
WASHINGTON (AP) — After struggling for months to avert bankruptcy, lender CIT Group has filed for Chapter 11 protection in an attempt to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses.
One of the worst news or the least you want to hear from a company your holding shares or call options of. Of course I did make many attempts to sell all my 65 option contracts but there were no buyers. I’m slowly learning to trade the hard way. My total loss for this bad trade is about $800 on margin.
CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT said in a statement that its bondholders overwhelmingly opted for a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.
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