Cit Group

CIT Group Inc., a major lender to small and medium-size businesses, filed for bankruptcy protection Sunday afternoon, a process that almost certainly will wipe out the federal government's $2.3-billion investment in the company. CIT is the first firm to fail after a government bailout. The company said it hoped to significantly reduce its debt in what is known as a prepackaged plan for reorganization, which would allow it to emerge from Chapter 11 protection by the end of the year.

Wal-Mart Stores Inc. is helping more than 1,000 of its apparel suppliers secure financing based on the strength of its own credit rating. The program was outlined in a letter to suppliers Nov. 2. Commercial finance giant CIT Group Inc. had filed for bankruptcy protection a day earlier, raising worries about apparel industry financing.

The $3-billion loan that CIT Group Inc. has stitched together to stave off bankruptcy should keep badly needed credit flowing for now to thousands of small and medium-size businesses -- including many in Southern California. CIT, one of the nation's largest lenders to small and mid-size businesses, said Monday that its major bondholders had agreed to commit $2 billion in secured funding immediately, with an additional $1 billion expected to be available within 10 days.

On the heels of its bankruptcy filing, CIT Group Inc.'s future as a commercial lending giant will be determined by the confidence of its creditors and customers. The 101-year-old lender's months-long financial struggles already have been a boon to rivals, which have picked up hundreds of CIT clients. But it is unclear whether those rivals will have the means to pose a real threat. With $71 billion in assets, CIT serves 2,000 vendors that supply merchandise to 300,000 stores, according to the National Retail Federation.

Billionaire investor Carl Icahn has offered to buy certain classes of debt from CIT Group Inc. bondholders as he tries to defeat a restructuring plan by the commercial lender. Icahn said in a letter that he would pay those bondholders 60 cents on the dollar for their bonds if they agreed to reject New York-based CIT's debt restructuring plan.

The deteriorating health of CIT Group Inc., a major lender to small businesses, is shaping up as a gut check for the Obama administration, which may be forced to decide whether to let the company fail. Most analysts agree that the failure of CIT would have relatively modest consequences for the financial system. But the New York company has grabbed the administration's attention because of its focus on small-business lending, an area of outsized political importance.

Manufacturers Hanover Corp. said Monday that it is in "serious discussions" with Dai-Ichi Kangyo Bank Ltd. of Japan regarding joint ownership of its wholly owned CIT Group, a commercial finance company. But industry analysts said Manufacturers Hanover will likely sell the unit and that it could bring up to $1.5 billion. A Manufacturers Hanover spokesman wouldn't comment beyond a brief statement issued by the New York-based banking company.

Tyco International Ltd. said Tuesday that it plans to buy CIT Group Inc. for about $9.2 billion in stock and cash, adding a financing component to its broad array of businesses. The deal will add a significant weapon to Tyco's corporate arsenal, allowing it to finance client purchases of its services and products that include electronic equipment, fire and security systems and disposable medical supplies.

On the heels of its bankruptcy filing, CIT Group Inc.'s future as a commercial lending giant will be determined by the confidence of its creditors and customers. The 101-year-old lender's months-long financial struggles already have been a boon to rivals, which have picked up hundreds of CIT clients. But it is unclear whether those rivals will have the means to pose a real threat. With $71 billion in assets, CIT serves 2,000 vendors that supply merchandise to 300,000 stores, according to the National Retail Federation.

CIT Group Inc., the struggling lender denied more federal aid last week, may be close to securing needed funding to avoid bankruptcy, a source close to the matter said. A deal could be struck as early as today, said the source, who spoke on condition of anonymity because the talks were confidential. The company's board met Sunday night to discuss its options, the source said.

CIT Group Inc., a major lender to small and medium-size businesses, filed for bankruptcy protection Sunday afternoon, a process that almost certainly will wipe out the federal government's $2.3-billion investment in the company. CIT is the first firm to fail after a government bailout. The company said it hoped to significantly reduce its debt in what is known as a prepackaged plan for reorganization, which would allow it to emerge from Chapter 11 protection by the end of the year.

CIT Group Inc., a large lender to small and mid-size businesses, said it received $4.5 billion in credit from its own lenders and bondholders in its effort to avoid collapse. The company, which has been trying for months to restructure its operations and reduce its debt, faces pressure from billionaire investor and bondholder Carl Icahn, who has been trying to get investors to reject the company's restructuring plan.

Stocks jumped Monday, giving the Dow Jones industrials their sixth straight advance, on another batch of upbeat earnings reports and more data suggesting the end of the recession is approaching. Word that commercial lender CIT Group had struck a deal to keep out of bankruptcy also drove share prices higher. The Dow Jones industrial average rose more than 100 points, putting it in the black for the year. The Standard & Poor's 500 climbed 1.1% to its highest finish since November.

The $3-billion loan that CIT Group Inc. has stitched together to stave off bankruptcy should keep badly needed credit flowing for now to thousands of small and medium-size businesses -- including many in Southern California. CIT, one of the nation's largest lenders to small and mid-size businesses, said Monday that its major bondholders had agreed to commit $2 billion in secured funding immediately, with an additional $1 billion expected to be available within 10 days.

CIT Group Inc., the struggling lender denied more federal aid last week, may be close to securing needed funding to avoid bankruptcy, a source close to the matter said. A deal could be struck as early as today, said the source, who spoke on condition of anonymity because the talks were confidential. The company's board met Sunday night to discuss its options, the source said.

The garment industry is tied in knots over reports that CIT Group Inc. could file for bankruptcy. Scores of Los Angeles businesses in the apparel industry rely on CIT for upfront financing, which provides them with cash until retailers pay their bills. Now that the New York commercial lender is on the brink of bankruptcy, local business owners are wondering how they'll get by. Many are scampering for alternatives to keep business moving. It isn't that easy.

Just as the retail industry is starting to find its footing after the upheaval of the last holiday season, a new storm is brewing. CIT Group Inc., the giant finance company, disclosed this week that it was talking to federal regulators about steps to keep it afloat. The New York company's financial troubles could weigh heavily on retailers this holiday season.

Wal-Mart Stores Inc. is helping more than 1,000 of its apparel suppliers secure financing based on the strength of its own credit rating. The program was outlined in a letter to suppliers Nov. 2. Commercial finance giant CIT Group Inc. had filed for bankruptcy protection a day earlier, raising worries about apparel industry financing.

CIT Group Inc., an important lender to smaller companies, moved closer to a bankruptcy filing by failing to persuade the federal government to provide further financial assistance. The decision by the Obama administration appears to mark the first time it has denied aid to a large, troubled financial company.