Cit Grp. Pfd A (fka CIT-A)

[hondaboost]

CITGQ (common share): $0.20. CITDQ (Pr-C): $1.86, while CITBQ is staying at $0.34? Weird!

[Gooddog]

Great if this happens..Except I am under the impression CIT-C value is $350M, CIT-B is $575M, CIT-A is $350M and CIT-D governments share is $2071M....I am I off on these figures? If so can you point me to the docs that show correct figures?

[BullRaid]

CITBQ Here is why everyone looking to pay CIT should look at CITBQ preferred A's. CITGQ will be heavy diluted again before long this why no bounce yet.

Under the terms of the Company’s 8.75% Non-Cumulative Perpetual Convertible Preferred Stock, Series C (the “Series C Preferred Stock”), as a result of the delisting of the Company’s common stock, each share of Series C Preferred Stock is immediately convertible into 9.0909 shares of the Company’s common stock. Due to the automatic stay in connection with the Chapter 11 Cases, the Company is prohibited from paying cash in lieu of any fractional shares.

They all might have received 9.0909 shares in lieu of their holdings! 9*20 cents = 1.80 $$

So eventually 500 MLN of CIT-PC is gone! What is left is Treasury prfds (2.1 BLN) and CIT-PA's(14 MLN)!!

CIT-PC will not trade any more, all of them will be converted to common shares!

[BullRaid]

CITBQ Chart Higher Highs and Higher Lows

[Stock]

CIT Confirmation Hearing Scheduled for December 8, 2009

Tuesday, November 03, 2009 16:13ET

CIT Group Inc. (OTC: CITGQ.PK), a leading provider of financing to small businesses and middle market companies, today announced that the U.S. Bankruptcy Court for the Southern District of New York (“the Court”) has scheduled a hearing to consider the confirmation of CIT's prepackaged plan of reorganization for Tuesday, December 8, 2009.

CIT Group Inc. and CIT Group Funding Company of Delaware LLC received the relief they sought from the Court with respect to its “first day” motions, allowing the Company to continue to operate in the ordinary course.

Additional Information

Additional information about CIT’s restructuring can be found on the Company’s Web site, www.cit.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/citgroup. The Company has established a toll-free Supplier Information Line at 800-422-2738 or, if you are calling from outside the U.S. 973-422-3877 and a toll-free Restructuring Information Line for all other interested parties at 866-967-1786 or 310-751-2686.

About CIT

CIT (OTC: CITGQ.PK) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that the additional facilities do not provide the liquidity that CIT is seeking due to material negative changes to CIT’s liquidity from draw down of loans by customers, the risk that CIT is unsuccessful in its efforts to consummate the plan of reorganization. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

Contact Info:

CIT Media Relations:
C. Curtis Ritter, 212-461-7711
Director of External Communications & Media Relations
[e-mail]

or

CIT Investor Relations:
Ken Brause, 1-866-54CITIR (542-4847)
Executive Vice President
[e-mail]

http://www.knobias.com/story.htm?eid=3.1.e13e45f69cd86502b15602130beb4481bb01bce9bc25f1ba37bedee700e12e5e

[BullRaid]

No worrys

[hondaboost]

CITDQ, $1.47, up $0.12, while CITBQ down $0.04? Doesn't make sense.

[435613422]

thanks for sharing Joe. Much aperication.

[Joe Stocks]

Back of the envelope calculation (very rough numbers from someone that should not even be attempting to try to estimate value left over for the preferreds. Do your own DD.)

The proforma post bk shows a book value of $8 bil. If CIT were to sell for 1.5 times book that would lead to a market cap of $12bil.

Those claims above ours that are not going to be paid in full, but at 70 cents on the dollar is about $36.7 bil. At 70% ($25.7bil) that leaves a balance of $11 bil that they will be due in stock. That leaves $1 bil to cover the preferreds shares claims of about $2.8 bil in Series A,B, and D. That is about 35 cents on the dollar in CVR.

Of course if CIT sells for not much less than 1.5X book we are screwed. More than 1.5X book and we get very happy.

Again, these are very rough numbers. Just wanted to share my thought process.

[Apophis]

it will be like throwing us a bone

and keep tax payers happy with the z stock and this one that is in par to the z shares.

[kafao]

differences between cit bankruptcy and other bankruptcys:
https://www.motorsliquidation.com/
http://www.epixpharma.com/
http://chap11.epiqsystems.com/clientdefault.aspx?pk=de7ced2b-52e7-4172-92e1-9ec425933bd0&l=1
http://www.wamuequity.org/

Not exist on the Cit web any section where clearly say that shareholders will get nothing, only in old documents preceding the bankruptcy, is for fear of one equity organization?

[restripe]

maybe but I haven't seen anything on it yet

[Apophis]

I think they will throw something to the A and Z shares.

[restripe]

no new common all share we be wiped out

[Apophis]

One share of new common plus two warrents?

They will not give any cash out

[435613422]

research177, so you believe CITBQ (CIT-A), will get some sort of money? how much $ do you think each share of CIT-A will get?

[BullRaid]

CITBQ 0.37 +48%

[Apophis]

The crazy speculators could end driving

this past 5 bucks?

[BullRaid]

CITBQ $0.35 +40%

[Stock]

What To Know About CIT
Matthew Craft, 11.02.09, 4:00 PM ET

http://www.forbes.com/2009/11/02/cit-carl-icahn-treasury-goldman-markets-bonds-faq_print.html

After months of haggling with creditors to avoid bankruptcy, the commercial lender CIT Group filed for Chapter 11 protection on Sunday. Bondholders rejected the company's proposed debt swap but accepted CIT's plan for reorganization. If all goes as planned, the commercial lender could drop $10 billion in debt and exit bankruptcy owned by its current bondholders by the end of the year.

The bankruptcy filing ended a series of twists in CIT's efforts to survive, highlighted by the sudden appearance of billionaire investor Carl Icahn. In recent weeks, Icahn railed against CIT's board, tried to rally bondholders to scupper both the proposed debt exchange and plan for bankruptcy, and also offered to float the company a loan. CIT rejected Icahn's first loan offer and turned to another lending group, which includes other large bondholders, for a $4.5 billion loan.

But that wasn't the end of it. On Friday afternoon, CIT said it lined up a $1 billion line of credit from Icahn, which could be used as debtor-in-possession financing in bankruptcy. That came after the company made a batch of other moves, altering its reorganization plan and settling a loan arrangement with Goldman Sachs. So much has happened in recent weeks that observers are bound to be confused. Here, then, is an attempt to clear up some of the most common questions. We'll update the list throughout the week.

Q: What happened to that derivative contract CIT had with Goldman Sachs? Did CIT have to pay the bank $1 billion to go bankrupt?

CIT and Goldman reworked the agreement last week. They trimmed the $3 billion facility to $2.12 billion, shedding the unused portion, and CIT made a $285 million payment. Goldman pledged not to pull the line, now fully drawn, in bankruptcy. CIT tapped the $4.5 billion added to its credit facility to pay Goldman.

Q: So the $2.3 billion the Bush administration gave CIT under the Troubled Asset Relief Program just disappears?

Not exactly. CIT recently tweaked its restructuring plan so that the Treasury Department's preferred shares could fetch maybe $230 million once the company exits bankruptcy protection. But that's if taxpayers get really lucky, says Sean Egan, president of Egan-Jones Ratings, an independent credit-rating agency. Every creditor (and attorney) would have to get paid first before any of the preferred stockholders get a cent.

Preferred stockholders will get what are called "contingent value rights" in the planned reorganization. Their value depends on how the new notes and new common stock trade. If the new notes and new common stock trade at a level that exceeds the face value of the old notes over a 60-day period, then the Treasury gets value for the CVRs. That is, it has the right to new common stock.

Q: I read on the Internet that my common stock could rise in value once CIT is healthy again. Is that true?

No. Under the proposed plan, all existing common stock and preferred shares will be canceled when CIT exits bankruptcy, and existing bondholders will get nearly all of the new common stock. "I have never seen common-stock holders get anything from a bankruptcy in my 25 years," said Michael Gesas, a bankruptcy attorney at Arnstein & Lehr, in Chicago.

[Stock]

SUPPLEMENT NO. 1 TO AMENDED OFFERING MEMORANDUM, DISCLOSURE STATEMENT AND SOLICITATION
OF ACCEPTANCES OF A PREPACKAGED PLAN OF REORGANIZATION
CIT Group Inc.
&
CIT Group Funding Company of Delaware LLC
Offers to Exchange
and Solicitation of Acceptances of a Prepackaged Plan of Reorganization

http://cit.com/wcmprod/groups/content/@wcm/@cit/@about/documents/information/offering-memorandum-supplement.pdf

[ToyotaMR2s]

sounds good, thnx Joe...

[Joe Stocks]

No telling what is going on. I sold a little at .435 just to say I took some profits. I would proabbly sellsome more if it gets back up there. Not to say I don't think it will go higher. I just like to lock some in as the position grows and becomes a bigger part of my portfolio.

For now I just sit and watch and look around the trash heap for other ideas.

[hondaboost]

CITDQ. (cit.pc), $1.58, up $1.06, or 150%. Amazing.

[ToyotaMR2s]

CITBQ getting gobbled up today, any ideas Joe? Thanks

[sherwood37]

just kidding of corse

[sherwood37]

yea 10 shares one ounce lol

[sherwood37]

all i can say is they are better than commons

[learning as I go]

Hey guys

I've not played the Pfd's before, but, this is up 60% today, so there is something to it?

Sorry, just not familiar with Pfd

[sherwood37]

this is going to a buck today

[Stock]

Did I mention how I got beat out of those 21's here yesterday, lol

I may never get over that.

I do have 24s

[Joe Stocks]

Yes, strange, but good for me. Went up to 1.75 which with the current price of CITGQ did not leave much profit, if any, from a conversion.

[Stock]

it spiked? wow

[Joe Stocks]

SOLD my 600 CITDQ's here for 1.60.

Dang! If I would have put my limit order (.63) in a little higher (like .65-.70) at the open I would have had several thousand shares instead of just 600 and would have had a very nice day.

But, $568 gain with commissions is better than a sharp stick in the eye.

[Stock]

Good information on iHub today, thanks all.

[Joe Stocks]

Just got off the phone with Schwab. They said they can not do the conversion until settlement date of Nov 10th since I just bought the shares today. After that it sounded like a quick process, although I had someone waiting on another line and forgot to ask EXACTLY how quick.

If it is voluntary I would bet the company would like at this point for as many as possible to convert so less is owed the preferreds.

[Stock]

Would this create even more selling pressure on the common?

[research177]

For updates on this CIT C issue, see my posts on the CITGQ board. "Immediately" has different outcomes and time frames for different people based on who you use as a broker. Obviously, common share prices can move pretty fast in either direction while a company is in bankruptcy



JMHO DYODD GLTA

[Must Be Patient]

"Under the terms of the Company’s 8.75% Non-Cumulative Perpetual Convertible Preferred Stock, Series C (the “Series C Preferred Stock”), as a result of the delisting of the Company’s common stock, each share of Series C Preferred Stock is immediately convertible into 9.0909 shares of the Company’s common stock." Doesn't that imply that the preferred holder has to take some action to convert, but could choose to sell them on the open market instead?

[Joe Stocks]

"Immediately" has a process to go through and the shares no doubt would be halted if not legal. I would not question how quick the shares are issued, but how long.

[research177]

Looks like playing with hotter fire than the commons or CITBQ and wondering if those trades out there this AM on CITDQ will be cancelled since they were supposedly all immediately converted to common shares earlier this week. Something is wrong. They are showing trades of 90 plus cents a piece on CITDQ...but are they real and will they be legitimate legal trades in the end?




JMHO DYODD GLTA

[Joe Stocks]

Well, I got a partial fill of 600 shares on my order at .63.

Now give me my 5454 common shares please...soon please!!

[Joe Stocks]

I was laying in bed last night and suddenly thought 'why is the CVR not known". Certainly they would have to be factored in and part of the plan they present to the court. They could easily say the preferreds will get warrants for such and such in such and such event.

[Joe Stocks]

Sure does seem like that should be the deal. Of course a discount for the uncertainty of when you would get them. I am going to try to buy some at the open.

I will let you know if I hear anything.

[Must Be Patient]

Straight from the SEC:

http://www.sec.gov/Archives/edgar/data/1171825/000095012309057703/y80157e8vk.htm

I've emailed my broker to ask how I would go about converting CITDQ into 9 CITGQ, but I may not get a timely response. If you get any better info from Schwab about how to do it, will you post? It does sound like CITDQ should be 9X the price of CITGQ, doesn't it?

[research177]

http://biz.yahoo.com/e/091104/citbq8-k.html


I don't understand why the CIT C's are still trading if they were immediately converted to common upon delisting. That 8 K makes it look like what is trading for them are not "real" shares anymore. Dangerous situation now if you ask me about opening new positions. The A preferreds are "dangerous" too but they still exist right now as far as any 8K's out there show and should be less dangerous than the common shares. And the A's now have less competition for contingent value rights of CIT's left over piece of pie, to the tune of 550 million dollars LESS competition.



JMHO DYODD GLTA

[Joe Stocks]

I think CIT filing BK is the best way to go. The governemnt adding on more debt does not cure the problems that CIT has. The restructuring of debt uinder BK could put CIT back on firm footing. Unfortunately the common suffers the most, but the alternative is worse IMO. Under the current plan CIT will still be able to make loans to small businesses in the future. With a bailout I think their would always be underlying uncertainty if they have the ability to survive.

[Joe Stocks]

So, how does one get the 9+ shares for each CITDQ? If indeed you could convert immediately, you could sell that common immediately for a nice return.

I hold only the A's. Maybe I will buy 100 shares of CITDQ just to see how it works.

Do you have a link for that 8K?

Thanks

[research177]

The Series C Preferred was removed from a preferred play upon fulfillment of that feature of conversion to 9 common shares.


From that 8K...
Item 8.01. Other Events.

Under the terms of the Company's 8.75% Non-Cumulative Perpetual Convertible Preferred Stock, Series C (the "Series C Preferred Stock"), as a result of the delisting of the Company's common stock, each share of Series C Preferred Stock is immediately convertible into 9.0909 shares of the Company's common stock. Due to the automatic stay in connection with the Chapter 11 Cases, the Company is prohibited from paying cash in lieu of any fractional shares.


The main preferred play is Preferred A series CITBQ since the Z is like a bond that's got a share price currently at about 70 percent of par (like alot of the bonds are looking to get in the proceedings) and the government's preferreds aren't really trading right now.


We continue to push for fair treatment of the remaining preferreds like we assume the government will push for fair treatment of their preferreds.


Removal of the C's frees up about 550,000,000 dollars
that had been in competition for money that was previously in consideration for the preferred's part of the company's "fair obligations".


Less competition for a given sector of that part of the company's money is nice.


JMHO DYODD GLTA

[kafao]

I try not to confuse wishes with reality, but I think they have to change new shares for old shares, there is no fire sale here as in the case of general motors, the debt does not exceed the assets.
Investors investing in motors liquidation wrong thinking that they are going to give something, and out of Cit thinking that they will not give anything.
Thanks.