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CIT seeks premier bankruptcy advice
By Mae Anderson |
July 13, 2009, Monday
|
Print Edition
Print Edition
CIT Group Inc is working with a premier bankruptcy firm as the troubled commercial lender awaits word on whether it will receive funds from a federal program designed to help banks, the company confirmed last Saturday.
The New York-based company has engaged Skadden, Arps, Slate, Meagher & Flom LLP, which has a prominent bankruptcy practice. The hiring was first reported in The Wall Street Journal last Saturday.
However, according to the company, CIT has worked with Skadden for "several years."
"Skadden is one of the principal law firms representing CIT," company spokesman Curt Ritter said in an e-mail response to an AP query. "They represent the firm on a wide variety of corporate matters. CIT will not comment on any specific aspect of their engagement."
The financier to small and mid-sized businesses is facing a liquidity crisis, according to analysts.
CIT is awaiting word on whether it will receive funds from the Federal Deposit Insurance Corp's Temporary Liquidity Guarantee Program, which lets cash-squeezed companies issue government-backed bonds to raise capital at a lower cost. As of June 8, the program has backed US$335.4 billion of debt.
FDIC Chairwoman Sheila Bair has said the program tries to be inclusive but applicants must meet certain standards. Generally, the program gives preference to companies with high credit ratings or that are considered pivotal to the overall economy.
The New York-based company has engaged Skadden, Arps, Slate, Meagher & Flom LLP, which has a prominent bankruptcy practice. The hiring was first reported in The Wall Street Journal last Saturday.
However, according to the company, CIT has worked with Skadden for "several years."
"Skadden is one of the principal law firms representing CIT," company spokesman Curt Ritter said in an e-mail response to an AP query. "They represent the firm on a wide variety of corporate matters. CIT will not comment on any specific aspect of their engagement."
The financier to small and mid-sized businesses is facing a liquidity crisis, according to analysts.
CIT is awaiting word on whether it will receive funds from the Federal Deposit Insurance Corp's Temporary Liquidity Guarantee Program, which lets cash-squeezed companies issue government-backed bonds to raise capital at a lower cost. As of June 8, the program has backed US$335.4 billion of debt.
FDIC Chairwoman Sheila Bair has said the program tries to be inclusive but applicants must meet certain standards. Generally, the program gives preference to companies with high credit ratings or that are considered pivotal to the overall economy.
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