CIT Bankruptcy Could Cause Problems For Small Businesses
Over the weekend CIT Group filed for bankruptcy protection in an attempt to cut $10 billion in debt from its balance sheets.
Economists say that the bankruptcy, which is the fifth largest ever filed in the United States, could impact small businesses across the country who have relied on CIT as a source of credit.
Many say the key to the commercial lender surviving its stay in bankruptcy court will be its ability to retain clients. One competitor has told the Wall Street Journal that it has already picked up several of the firms clients and that more keep coming.
In a pre-arranged deal approved by 90 percent of the voting debt holders, the company plans to restructure and emerge from bankruptcy by the end of the year.
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