CIT Group Inc.’s board approved a deal late Sunday with major bondholders to keep one of America’s largest lenders to small and mid-size businesses out of bankruptcy with a $3-billion US rescue loan, according to published reports.
The emergency loan would provide temporary financing for CIT Group so it can complete a debt exchange that would swap current bonds for new bonds that mature at a later date, according to The Wall Street Journal.
New York-based CIT had been negotiating with six key bondholders in an attempt to avoid a bankruptcy filing.
CIT has been scrambling to raise $2 billion to $4 billion after the U.S. government refused to bail out the company. Rescue talks with government regulators broke off late Wednesday after days of round-the-clock negotiations.