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we are dead...my broker just removed the CUSPID number from my acct. cuz it says it expired...POS...
I agree but I am sure a class action will open soon.
It is unheard of to just cancel prefered shares because they are second in line from bondholders?
well, they just approved Thain as new boss.
not sure it will help the old preferred shareholders.
as far as i can tell, we're dead.
US government will now have the right to walk in at any time and change management. They will now have an indefinate hold on CIT.
I was going to ask what people got for their CVRs (since I did not own any). I thought most sold.
Thanks for the post and sorry for your loss.
Treasury Recognizes $2.3B TARP Loss From CIT Group
WallStreetJoutrnal.com
Meena Thiruvengadam
DOW JONES NEWSWIRES
Feb. 11, 2010
U.S. taxpayers' $2.3 billion stake in CIT Group Inc. (CIT) has officially been wiped out.
The U.S. Treasury recognized the loss, which was widely expected, in a report released Wednesday.
The Treasury provided the commercial lender with funds from the Troubled Asset Relief Program in December 2008, but CIT Group still ended up undergoing a bankruptcy reorganization by the end of 2009.
Despite the CIT Group loss and other likely taxpayer losses, the Treasury expects the cost of TARP will continue to fall from the just under $120 billion at which it now stands. The Treasury is expecting its losses on financial sector rescue efforts to largely stem from aid provided to domestic auto makers, American International Group (AIG) and government sponsored enterprises Fannie Mae (FNM) and Freddie Mac (FRE).
"If Congress joins the President in adopting a Financial Crisis Responsibility Fee, Americans will not have to pay one cent for TARP," Treasury Secretary Timothy Geithner said in a statement released separately Wednesday.
Treasury is expecting to turn a profit on aid provided directly to the banking sector and on Wednesday said it had received a $7.6 billion TARP repayment from PNC Bank (PNC). Including the PNC transaction, banks have so far repaid $173 billion in capital borrowed from the Treasury.
Treasury made both announcements during a government shutdown in response to the area's second severe winter storm in a week.
http://online.wsj.com/article/BT-CO-20100210-719446.html?mod=WSJ_latestheadlines
The End.
Nobody posted this. So I figured I would.
CIT To Prepay $750 Million of Debt
Contingent Value Rights Expire
NEW YORK, Feb 08, 2010 (BUSINESS WIRE) -- CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today announced that its Board of Directors has authorized the voluntary prepayment of $750 million on its $7.5 billion first lien credit facility. The Company will prepay this high cost debt out of its available holding company cash position, which is in excess of $5 billion. The repayment will be made on February 9, 2010 on a pro rata basis among outstanding tranches and will be subject to the applicable 2% payment premium.
In addition, the Company announced that since the terms for distribution of common shares to holders of its Contingent Value Rights (CVRs) were not met as of the February 8, 2010 Measurement Date, they have expired without value.
http://ir.cit.com/phoenix.zhtml?c=99314&p=irol-newsArticle&ID=1385066&highlight=
yes, boy what it says for today's banks. when Thain is your #1 pick? this country is in for a world of hurt. and CIT settled for a leader. there was no one out there better? sounds like govt "helping" CIT setup their board. same old shuffle. same ole good ole boys getting taken care of. nothing new to see here.
Was he the guy that bought the $160,000 toilet in that office renovation at ML?
CIT names ex-Merrill CEO Thain as chairman, CEO
CIT Group names former Merrill Lynch CEO John Thain to lead as chairman and CEO of lender
By Jennifer Malloy, AP Business Writer , On Sunday February 7, 2010, 11:24 pm EST
NEW YORK (AP) -- CIT Group said Sunday it has chosen former Merrill Lynch CEO John Thain to lead the company as chairman and CEO as the commercial lender continues to restructure its business following a brief stay in bankruptcy protection last year...
http://finance.yahoo.com/news/CIT-names-exMerrill-CEO-Thain-apf-1424561411.html?x=0&.v=7
Just email this story to all the news reporters.
They are going to love thrashing this company if they end up screwing the taxpayers.
just adding to:
usdebtclock.org
do you know what the cit stock has to trade to for the trigger to happen for CITprG? they have until feb 12th right? thats 60 days.
You will hear this all over the media if this company
screws the public out of the TARP/taxpayers money. The PR
will be very bad in years to come and most big retailers
may choose not to be associated with them.
my cit commons were cancelled entirely. but my cit-a were not zero'd out and are pending CITprG. when should we hear something about this stock? is it around feb 8th?
Apophis
i agree..
CIT recieved 4 billion in tax payers TARP money and this is being closely watched by washington. The government did not just hand out this money, companies had to sign for it. They have the right to step in and fire SR management and be entitled to 75% of the common stock. The media will go ballistic if the Gov. pfd gets nothing for its shares.
Better be something for us A's and the government prefered? The public will be screeming murder if they are left out to dry.
If on a long shot there is some value for the pfd,
it will most likely be converted to common stock?
The good thing is what ever they do for the gov. pfd they have to do for pfd A shares. They are in par with gov. shares?
If not I think we got a class action suit here
yes, it stopped trading some time ago. just waiting for february 8th
#msg-44382214
no volume, has this stopped trading?
As far as I know, nothing has changed.
#msg-44451896
what does the share price have to stay at for the cvr's to payout? and isnt the date for the cvr's feb 8th?
CIT new common is at 31.50
in reality nobody know the value of the CVR
we need to waid 8 february
bankruptcy proceedings are rarely cookie-cutter deals. they are all different.
the court documents are linked here...read a few posts if you want to dig into the details.
Generic; thnx ! Could same thing would happen to VSTNQ, UCBHQ,ADVNAQ,ADVNBQ? Never experienced in Q plays! Following footsteps!
TIA
GL
the common citGQ canceled with nothing. no value.
the preferred shares cancelled with "contingent value rights" to be determined some time around February 11, 2010.
this stock doesn't trade any more, so you can't quote it.
those that have it in their account basically have a CUSIP that has no public trading market, and until the CVR is known, has no known payout value.
if there are CVR, the payout could be NEW shares, could be cash, or donuts, left over Christmas cookies, could be anything. don't know what will happen. will just have to wait until February.
Generic; What is the difference? which one holding? what happens with previous common with Q and preferred A after there is "new" CIT? Where do you get quote for "oldies"
tia
GL
Post from yahoo
On December 10, 2009, the Company closed its issuance of approximately $21.04 billion principal amount of its 7.0% Series A Second-Priority Secured Notes due each year from 2013 to 2017 (the "Series A Notes") and Delaware Funding closed its issuance of approximately $2.15 billion principal amount of its 10.25% Series B.
and bondholders owned 100% of new commons
All I see is zeros for the common.
Look at the common shares out to the right on the bond list in the link I posted
Am I reading it wrong?
Are the bonds received convertible? I did not know that.
Lots of things can happen in 60 days and what ever does we really can't do much about. All we can do is sit back and wait. Whatever happens the next day after the sixty days are up we will just have to move on - hopefully a little richer, but surely more wiser. <VBG>
The Serenity Prayer
GOD, grant me the serenity
to accept the things
I cannot change,
Courage to change the
things I can, and the
wisdom to know the difference.
Just a guess, but it looks like all the bondholders are converting and dumping shares, and the prospects for the new CIT Group common seeing an elevated enough level to help us out much here is grim.
If today's selling rampage was an indication, I doubt the new common will see $40 any time in the 60 day window.
Yet more proof that bond traders rule, and equity traders drool.
Page 10:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjMzNzB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Planned Securities Distribution by CUSIP
Class 15 - Old Preferred Interests
125581207 Series A Preferred Stock Yes
125581306 Series B Preferred Stock Yes
125581603 Series C Preferred Stock Yes
NA Series D Preferred Stock Yes
From:
http://ir.cit.com/phoenix.zhtml?c=99314&p=irol-IRHome
same one i got
from my broker
The company CIT GROUP INC is exiting bankruptcy as the creditors to the company have accepted the company's plan of reorganization and the company has emerged from bankruptcy effective 12/11/2009. According to a press release from the company, the Company¿s existing common and preferred stock, along with all non-reinstated debt, will be canceled effective upon consummation of the Plan. While we have not yet received an official indication, it is not expected that common shareholders of CIT GROUP INC (CITBQ) will receive a distribution as part of this emergence from bankruptcy. For further inquiry, we recommend contacting the investor relations department of the company at 1-866-54CITIR (542-4847) or investor.relations@cit.com. At this time we have no plans of removing the positions from any accounts. Please contact us again if you have any additional questions.
Page 10:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjMzNzB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Planned Securities Distribution by CUSIP
Class 15 - Old Preferred Interests
125581207 Series A Preferred Stock Yes
125581306 Series B Preferred Stock Yes
125581603 Series C Preferred Stock Yes
NA Series D Preferred Stock Yes
From:
http://ir.cit.com/phoenix.zhtml?c=99314&p=irol-IRHome
Yup same here..
N/A showing here... with that CUSIP
i have emails here telling me they did not wipe the position from my account
Showing balance $0 now..
CUSIP: 125581207
Description: CIT GROUP 6.35% SRS A
12/10/09 Delisting 125581207 (CITBQ)125581207 (CITBQ) to 125581207
obviously so. i certainly didnt get anywhere with him.
joe, what is the benchmark they have to hit and sustain for the 10 days for the old pref to see cvr's worth anything? and what would that worth be a percentage or full payout?
That makes my head hurt