Cit Grp. Pfd A (fka CIT-A)

[Stock]

Form 8-K for CIT GROUP INC

--------------------------------------------------------------------------------

4-Nov-2009

Bankruptcy or Receivership, Triggering Events That Accelerate or Increase a Direct

Item 1.03. Bankruptcy or Receivership.

On November 1, 2009 (the "Commencement Date"), CIT Group Inc. (the "Company") and CIT Group Funding Company of Delaware LLC ("Delaware Funding" and together with the Company, the "Debtors") filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") (the "Chapter 11 Cases"). The Chapter 11 Cases have been assigned to the Honorable Allan L. Gropper and are being jointly administered under the caption "In re CIT Group Inc. and CIT Group Funding Company of Delaware LLC" Case No. 09-16565 (ALG). The Debtors will continue to manage their properties and operate their businesses as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

A copy of the press release, dated November 1, 2009, announcing the filing of the Chapter 11 Cases is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or Obligations under an Off-Balance Sheet Arrangement.

Financial Obligations

The filing of the voluntary petitions for relief described in Item 1.03 above (the "Voluntary Petitions") constituted an event of default or termination event and caused the automatic and immediate acceleration of all debt outstanding under a number of instruments and agreements relating to financial obligations of the Debtors and certain of their affiliates (the "Accelerated Financial Obligations"). The Debtors believe that any efforts to enforce the payment obligations under the Accelerated Financial Obligations are stayed as a result of the filing of the Voluntary Petitions, with the exception of certain unsecured credit facilities to affiliates of approximately $284.1 million, certain transactions under various swap agreements, and certain aircraft and rail leases. The material Accelerated Financial Obligations include:

- the vast majority of the unsecured credit facilities and loans of the Company and its affiliates in the aggregate amount outstanding of approximately $4.1 billion;

- all of the senior unsecured notes issued by each of the Debtors in the aggregate amount outstanding of approximately $28 billion;

- all of the Company's subordinated notes in the aggregate amount outstanding of approximately $1.1 billion; and

- all of the Company's junior subordinated notes in the aggregate amount outstanding of approximately $750 million.

In addition, the filing of the Voluntary Petitions constituted a termination event under various swap agreements to which the Debtors and certain affiliates are party. The Debtors or their affiliates are entitled to receive net payments in the amount of approximately $236 million as a result of such terminations if all of the swap agreements are actually terminated. The amount of such net payments are estimated and are subject to change based upon pricing quotes received by the calculation agent and changes in market interest and foreign currency rates. If additional material Accelerated Financial Obligations later become calculable or known to the Registrant, information regarding such additional obligations is expected to be provided by a subsequent amendment to this Form 8-K.

The filing of the Voluntary Petitions constituted an event of default under certain aircraft and rail leases under which a wholly-owned subsidiary of the Company is the head lessee. The head lessee's obligations under these leases are guaranteed by the Company. In the event that the head lessor under each lease demands stipulated loss payments as a result of the event of default, the head lessee, or the Company as guarantor, would be obligated to make such payments in the amount of approximately $1.7 billion. However, as a result of such payments, the Company expects that it would receive title to air and rail assets from the head lessors currently valued at approximately $1.3 billion.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On November 2, 2009, NYSE Regulation, Inc. ("NYSE Regulation") announced that it determined that listing of the Company's (i) common stock (ticker symbol: CIT); (ii) 6.350% Non-Cumulative Preferred Stock, Series A (ticker symbol: CIT PR A); (iii) 8.75% Non-Cumulative Perpetual Convertible Preferred Stock, Series C (ticker symbol: CIT PR C); and (iv) equity units (ticker symbol: CIT PR Z), in each case on the New York Stock Exchange (the "NYSE"), should be suspended prior to the market opening on November 3, 2009. NYSE Regulation determined that the Company is no longer suitable for listing in light of the November 1, 2009 commencement of the Chapter 11 Cases by the Debtors which is sufficient grounds for the commencement of delisting procedures pursuant to Section 802.01D of the NYSE's Listed Company Manual. At this time the Company does not intend to take any action to appeal NYSE Regulation's decision and therefore, it is expected that the Company's securities described above will be delisted after completion by the NYSE of application to the Securities and Exchange Commission.

Item 7.01. Regulation FD Disclosure.

The Company guarantees approximately A$300 million of public debt issued by its subsidiary, CIT Group (Australia) Limited ("CIT Australia"). The Company and CIT Australia have reached an agreement with a majority of CIT Australia's noteholders to amend the terms of the debt including waiver of an event of default resulting from the Company's bankruptcy, grant of a first lien security interest in most of CIT Australia's assets to the noteholders, subordination of the intercompany notes owed by CIT Australia to the Company to the CIT Australia public debt and institution of a cash control process whereby certain cash is used to repurchase and retire notes prior to the maturity date. The interest rate on the debt remains unchanged and CIT Australia will not pay the noteholders any amendment fee.

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.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:

Exhibit
Number Description

99.1 Press Release dated November 1, 2009.


Forward-Looking Statement This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond CIT's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this document that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding market, competitive and/or regulatory factors, among others, affecting CIT's businesses are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors are described in CIT's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2008 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2009. CIT is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

[Stock]

Thanks. Good suggestion.

[research177]

From the Yahoo board. There was a campaign to get Senator Dodd to remember what he said this summer, specifically, "the Federal government should provide assistance to help CIT Group avert bankruptcy." He said that publicly around July 23, 2009.

He is running for re-election now and you would think as Chairman of the Senate Banking Committee that he could have talked those with power into seeing how a little help could go a long way with CIT Group.


From the Yahoo CIT board...

Senator Dodd said what he said this summer and his political career is on the line with this one.

The people of Connecticut will not forget throwing the small business generator and unemployment reducer CIT Group to be devoured by the CDS placer carnivorous wolves that look as though they almost set CIT Group up to fail before, GET THAT, before the government gave it a 2.3 billion dollar TARP start of a lifeline. Front running of another ilk? We will see. They need to follow through with more effort. That was just inhumane to start and not finish the bailout and forced board and CEO change that usually comes along with that kind of help.



Senate Banking Committee
Christopher J. Dodd Chairman (D-CT)[phone]

Please follow through with the CIT assistance mentioned July 23, 2009 by your honor as fast as possible. The government should use their various avenues including, but not limited to, TARP Recycle, TLGP, Fed backing, FDIC guarantees, Fed discount window, or many other possible avenues. This company only needs a "small" amount of assistance. Please move quickly because they are initiating an action right now which is tantamount to the outcome that a bankruptcy would have and their other presented alternative is a bankruptcy. There is essentially very little difference as far as the outcome for the current shareholders, including I believe, the government's TARP shareholder investment. CIT Group is known as THE small business lender and most of the jobs in this country are in the small business sector. Thank you.




Senate Banking Committee
Christopher J. Dodd Chairman (D-CT)[phone]
Richard C. Shelby Ranking Member (R-AL)[phone]

Tim Johnson (D-SD) [phone]
Jack Reed (D-RI) [phone]
Charles E. Schumer (D-NY) [phone]
Evan Bayh (D-IN) [phone]
Robert Menendez (D-NJ) [phone]
Daniel K. Akaka (D-HI) [phone]
Sherrod Brown (D-OH) [phone]
Jon Tester (D-MT) [phone]
Herb Kohl (D-WI) [phone]
Mark Warner (D-VA)[phone]
Jeff Merkley (D-OR)[phone]
Michael Bennet (D-CO)[phone]
Richard C. Shelby Ranking Member (R-AL) [phone]
Robert F. Bennett (R-UT)[phone]
Jim Bunning (R-KY)[phone]
Mike Crapo (R-ID)[phone]
Mel Martinez (R-FL) Resigned, I believe.
Bob Corker (R-TN)[phone]
Jim DeMint (R-SC)[phone]
David Vitter (R-LA)[phone]
Mike Johanns (R-NE) [phone]
Kay Bailey Hutchison (R-TX)[phone]




House Committee on Financial Services

The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund. The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws. Click here for a more detailed description of jurisdiction by subcommittee.

Chairman Barney Frank represents Massachusetts' Fourth Congressional District. The other Democratic members of the Committee are:

Rep. Paul E. Kanjorski, PA
Rep. Maxine Waters, CA
Rep. Carolyn B. Maloney, NY
Rep. Luis V. Gutierrez, IL
Rep. Nydia M. Velázquez, NY
Rep. Melvin L. Watt, NC
Rep. Gary L. Ackerman, NY
Rep. Brad Sherman, CA
Rep. Gregory W. Meeks, NY
Rep. Dennis Moore, KS
Rep. Michael E. Capuano, MA
Rep. Rubén Hinojosa, TX
Rep. William Lacy Clay, MO
Rep. Carolyn McCarthy, NY
Rep. Joe Baca, CA
Rep. Stephen F. Lynch, MA
Rep. Brad Miller, NC
Rep. David Scott, GA
Rep. Al Green, TX
Rep. Emanuel Cleaver, MO
Rep. Melissa L. Bean, IL
Rep. Gwen Moore, WI
Rep. Paul W. Hodes, NH
Rep. Keith Ellison, MN
Rep. Ron Klein, FL
Rep. Charles Wilson, OH
Rep. Ed Perlmutter, CO
Rep. Joe Donnelly, IN
Rep. Bill Foster, IL
Rep. Andre Carson, IN
Rep. Jackie Speier, CA
Rep. Travis Childers, MS
Rep. Walt Minnick, ID
Rep. John Adler, NJ
Rep. Mary Jo Kilroy, OH
Rep. Steve Driehaus, OH
Rep. Suzanne Kosmas, FL
Rep. Alan Grayson, FL
Rep. Jim Himes, CT
Rep. Gary Peters, MI
Rep. Dan Maffei, NY

Republican Members

Rep. Spencer Bachus, AL
Rep. Michael N. Castle, DE
Rep. Peter King, NY
Rep. Edward R. Royce, CA
Rep. Frank D. Lucas, OK
Rep. Ron Paul, TX
Rep. Donald A. Manzullo, IL
Rep. Walter B. Jones , NC
Rep. Judy Biggert, IL
Rep. Gary G. Miller, CA
Rep. Shelley Moore Capito, WV
Rep. Jeb Hensarling, TX
Rep. Scott Garrett, NJ
Rep. J. Gresham Barrett, SC
Rep. Jim Gerlach, PA
Rep. Randy Neugebauer, TX
Rep. Tom Price, GA
Rep. Patrick T. McHenry, NC
Rep. John Campbell, CA
Rep. Adam Putnam, FL
Rep. Michele Bachmann, MN
Rep. Kenny Marchant, TX
Rep. Thaddeus McCotter, MI
Rep. Kevin McCarthy, CA
Rep. Bill Posey, FL
Rep. Lynn Jenkins, KS
Rep. Christopher Lee, NY
Rep. Erik Paulsen, MN
Rep. Leonard Lance, NJ




The above should give you some places to start with your efforts too.



JMHO DYODD GLTA

[research177]

White house press release says they will be monitoring "their" stake in the CIT Group.


NOVEMBER 3, 2009, 1:42 P.M. ET White House Notes 'Stake' In CIT Bankruptcy Proceeding Article Email Printer
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By Maya Jackson Randall
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The White House clearly has an interest in how CIT Group Inc.'s bankruptcy plays out given that taxpayers have provided the lender billions of dollars in financial aid, the White House said Tuesday.

"There's obviously a process that will now be ongoing in terms of their planned bankruptcy, but obviously, we have a stake in how that comes out as taxpayers have invested that money," said White House spokesman Robert Gibbs in a press briefing Tuesday.

CIT, which filed for bankruptcy protection on Sunday, has received $2.3 billion in funds from the Troubled Asset Relief Program, or TARP.

In response to a question, Gibbs said the White House is "heartened" by the fact that CIT, which lends to small- and medium-sized firms, will continue to lend.

He added that the Obama administration plans to continue to take steps to protect the economy.

"We will continue to seek ways to stabilize the financial system," he said.

In response to another question, Gibbs said the best way for the Obama administration to deal with the budget deficit is to get the economy moving again. "That's what the economic team is focused on and that will have the most impact in the short term," he said.

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255; [e-mail]




http://online.wsj.com/article/BT-CO-20091103-714082.html




JMHO DYODD GLTA

[Apophis]

institutonal ownership is still high

I wonder what they are waiting for?

[Joe Stocks]

FWIW, >>>What Does Contingent Value Rights - CVR Mean?
A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A contingent value right is similar to an option because it often has an expiration date that relates to the time the contingent event must occur. Investopedia explains Contingent Value Rights - CVR
For example, shareholders of an acquired company may receive a CVR that enables them to receive additional shares of the target company in the event that target company's share price falls below a certain level by a specified date.

Another example of a CVR would be for a target company to set aside a large sum of money that would be transferred to the shareholders of the acquired company in the event that the price of the target company's shares do not meet a certain target or fall below a specified price. <<<<

My thinking is that CIT will not go to the preferred shares holders and offer 1 penny for every $1.00 in preferreds you hold. I think there will be some kind of option or warrant that has value in excess of 1 cent.

[Stock]

ha! you got mine lol I'll keep fishin

[Joe Stocks]

I had a limit order in at .21 and it filled. Never thought I would see it after earlier today highs. I assume someone wanted out.

[Stock]

I put an order in at 21 cents when it was displaying a .209 ask and the MM immediately moved away from my order and up it went

Don't you just love the pinksheets?

[Joe Stocks]

Thanks. can't think of anything for the Ibox at this time. I usually close them and just interested in the messages. I don't know if for the moment that most that can be said about this play has been said and now is time to wait and see what happens. I would imagine that most that are in CITBQ are in for more than a daytrade. I think this one has great potential to run at some point.

My theory on these stocks that fall hard and end up on the pink sheets are a nice potential money maker for the market makers that sponsor them. Letting them sit stagnant makes them little money. These stocks end up be enticing money makers that they can manipulate from time to time to draw in nice profits. Look at the lehman trust preferreds recently. Nice run from about 15 cents to about 90 cents, and now down to about 30-35 cents.

So, even if one thinks these will end up worthless (I don't think they will) there is still potential for a nice run. I would love to see someone put the gov't on the spot and ask them how they are going to protect the taxpayers investment.

[BullRaid]

CITBQ Gapping 0.34 x 0.35

[research177]

The speediness would imply that all preferred owners just sit back and don't get a class action law suit going to fight for their rights. I would be so shocked if FMR just takes it quietly and loses all their 25 percent of the outstanding CIT Preferred Series C stock and that additional about 30 plus million shares of CIT common. What a wreck for them it seems. They have got to do something to get some retribution out of CIT which apparently is not "insolvent" because their liabilities are "not" greater than their assets. This whole thing stinks to no end.



JMHO DYODD

[restripe]

what happened to the 2.5 that ican was talking about?

[Stock]

CIT default swaps will be settled by auction-ISDA

Tue Nov 3, 2009 1:47pm EST

NEW YORK, Nov 3 (Reuters) - Credit derivative dealers will settle credit default swaps insuring the debt of CIT Group (CITGQ.PK) in an auction after the commercial lender filed for bankruptcy, the International Swaps and Derivatives Association said on Tuesday.

The auction is expected to be one of the largest since the failure of Lehman Brothers (LEHMQ.PK) due to the large amounts of protection written on CIT's debt, though market participants said the process has been well tested and is unlikely to create market disturbances.

Around $3.1 billion in net volumes is outstanding in single name protection on CIT's debt, according to data by the Depository Trust & Clearing Corp. In addition, CIT was included in a number of tranche trades based on CDS indexes and was a common credit in Collateralized Debt Obligations.

The auction will set a value for the CDSs, which will be used to close out positions.

CIT, a lender to hundreds of thousands of small and medium-sized businesses, filed for bankruptcy on Sunday, as the global financial crisis left it unable to fund itself and the recession clobbered its loans.

A date for the auction has not been set. CDSs are used to protect against a borrower defaulting on their debt or to speculate on their credit quality.

[Stock]

Let me know if you want to see something in the iBox, Joe.

And if you'd rather put it there yourself, speak up.

[Joe Stocks]

Generic, Happy to see the new board management. Thanks.

[Stock]

New sheriff in town: This isn't a Yahoo Finance message board. If you want to attack other users, take it anywhere but iHub.

Dicuss the stock. Period. If you think somebody is not making a good investment or trading decision, beat your wife, cat or pillow with that sentiment, not another iHubber.

This may be a virtual world, but it's my virtual living room now, and I don't put up with stupid, careless drunks hurling insults at others in my living room. Ever.

Other than that, have a nice day!

[Apophis]

I am moving to this board

everyone keeps posting the same things on the CIT board

[Stock]

CITBQ chart - 1 day

[Stock]

from Dallas Dirt Real Estate Blog

November 1, 2009

Will CIT’s Bankruptcy Filing Affect Dallas Real Estate?

By now you’ve heard that CIT Group has filed for Chapter 11 bankruptcy protection. Taxpayers, who gave the company 2.3 billion last year, will likely not be re-paid. I’m not discounting that, but even worse, CIT is one of the country’s largest lenders to small business and retailers, like Neiman Marcus. Two months prior to the holiday season is not a great time for retailers to lose access to capital. My concern is how this will trickle down: small and mid-size businesses will not be able to fiance short-term surges, which will seriously affect their business models, and commercial real estate may take another bullet. We have seen the effects of the credit crunch in real estate, now we’re going to see it in the retail industry, which is in everybody’s face on a daily basis. Consumer confidence? You see where I’m going with this: we’ve had 60,000 home foreclosure postings this year.

I so do not like being Debbie Downer, truly, but the prognosis isn’t looking too positive. Your thoughts?

Update: Today’s New York Times downplays the disaster scenario I envisioned last night. Apparently this is a pre-packaged, “different kind of bankruptcy” that allows the company to re emerge from court protection by the end of the year, which is a pretty speedy recovery.

posted by Candy Evans | November 1st, 2009 9:18pm | filed under Changing market trends in Real Estate, Real Estate, Wall Street meltdown | 1 Comment »

http://dallasdirt.dmagazine.com/2009/11/01/will-cits-bankruptcy-filing-affect-dallas-real-estate/

[ToyotaMR2s]

CITBQ looking for HOD here...

[RonnieD]

somewhat assumptive articles were put out presupposing "fact" that all CIT pref and common would be a total loss. That conflicted with what I read on the DJ Wire, which is not on the internet. With the least of the unsecured poised to get 70 cents on the dollar, recovery to all pref and common would be minimal. Of course, "minimal" from this level could result in profit from whatever units or rights may be distributed post-bk.
I'm starting to lose interest in it for now, much is in question this early...

[Stock]

CIT, Filing Statistics, Crusader, Charter: Bankruptcy (Update1)

By Bill Rochelle

Nov. 3 (Bloomberg) -- The prepackaged Chapter 11 filing by CIT Group Inc. left non-bankrupt subsidiaries at risk of being called in default on their own obligations. To prevent an erosion in value and allow subsidiaries to remain outside bankruptcy, CIT is calling on the bankruptcy judge to stop some creditor actions against a leasing subsidiary as though the subsidiary too was in bankruptcy reorganization.

CIT’s efforts won’t go unopposed.

In papers filed soon after the Chapter 11 petition on Nov. 1, CIT sought a temporary restraining order against parties to some railcar leasing transactions of non-bankrupt subsidiary CIT Group/Equipment Financing Inc.

CIT says there are 41 transactions where other parties to the complicated leases could declare a default against the subsidiary. CIT says the actions “would likely destroy the going-concern value of the railcars,” bringing on “the needless loss of up to approximately $680 million of value” in the railcar business.

The parent’s bankruptcy filing was an event of default, theoretically allowing other parties to the leases to take control of the railcars and demand direct payment from the operators of the equipment. Some of the parties also could demand payment of so-called stipulated loss value under the leases, including the value of the equipment and other damages, such as adverse tax consequences.

Some defendants in the suit filed papers yesterday objecting to the scope of the injunction CIT seeks. John Hancock Life Insurance Co., Northwestern Mutual Life Insurance Co., and Teachers Insurance & Annuity Association of American called on the bankruptcy judge to insure CIT will pay stipulated loss value for the equipment in December despite an injunction. They also want aircraft to be excluded specifically from the proposed injunction.

Other defendants in the suit include affiliates of Siemens AG, Fifth Third Bancorp, and Wells Fargo & Co. The lawsuit will test whether the bankruptcy judge can or will grant the subsidiary the same relief it would enjoy were it too in Chapter 11.

New York-based CIT, the sixth-largest commercial and industrial lender in the U.S., is also the third-largest in the leasing of railcars and aircraft. It listed assets of $71 billion and debt totaling $64.9 billion in the petition.

The reorganization plan, already accepted by all affected creditor classes, is to reduce debt by $10 billion. The plan provides full payment for some structurally senior noteholders while senior unsecured creditors are projected to have a 94.4 percent recovery from new notes, equaling 70 percent of their existing holding, plus common equity.

Subordinated debt holders are predicted to have a 50 percent recovery by receiving new common equity and contingent value rights.

Junior subordinated creditors are expected to see an 8.1 percent dividend through new equity and contingent value rights. Existing common shareholders receive nothing, while holders of existing preferred equity are to be given contingent value rights.

The case is In re CIT Group Inc., 09-16565, U.S. Bankruptcy Court, Southern District New York (Manhattan).

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a7Gm8cp8MzP8#

[Stock]

perpetual preferreds, ok I understand your point.

So you're saying there's only enough assets left to pay the D shares off?

I don't think that's the case, but we shall see.

[RonnieD]

yes, no quotations, no trading.

[Stock]

D shares?

http://www.financialstability.gov/docs/agreements/03192009/CIT%20Group,%20Inc..pdf

Page 78

[RonnieD]

http://www.google.com/search?hl=en&source=hp&q=treasury+series+preferred+cit&aq=f&oq=&aqi=

[Stock]

"Treasury" meaning what?

[RonnieD]

that's one way to look at it, but i think Treasury will fare better than A or C, because they loaned the 2.3 bil.

i'm up, may get tired of it and sell. decisions......

[Stock]

25 cents is one penny on the dollar. I'll take 10 cents on the dollar or better lol

[RonnieD]

yesterday afternoon, DJ Wire reported Treasury Spokeswoman Meg Reilly expected all classes of CIT stock to be cancelled upon emergence from bankruptcy, however mentioned "minimal recovery" for both common and preferred, including theirs, and that the Dept. would be keeping a "watchful eye" on proceedings.

[Stock]

I'm not so sure the A shares are dead. We shall see...

[DanBB]

I'm not following CIT now and I've been out of it a while. It was obvious where it was most likely heading. I hope everyone got out in time.

[Stock]

So, CIT-A preferreds are basically a penny on the dollar now... 1/100th of face value at 25 cents.

Is that right?

As a taxpayer, where can I apply political pressure to make sure my tax money is being used toward asset recovery from CIT Group?

[Stockminder]

Thanks Generic EOM

[Stock]

CIT-A becomes CITBQ tomorrow.

OTCBB, OTHER-OTC AND PORTAL SYSTEM CHANGES

SECURITY ADDITIONS
DL Date Symbol Company Name Effective Date OATS Reportable Flag Comments
11/2/2009 CITBQ CIT Group Inc (DEL) Preferred Series A 11/3/2009 Y From NYSE (C I T $ A)

http://www.otcbb.com/asp/dailylist_search.asp?SearchSymbolForm=TRUE&OTCBB=ALL&searchby=symbol&searchfor=citbq&searchwith=Starting&image1.x=30&image1.y=3

[Stock]

13:10 CITEQ CIT Group Inc (DEL) Equity Units 11/3/2009 Y 100 From NYSE (CI $Z)

13:10 CITGQ CIT Group Inc (DEL) Common Stock 11/3/2009 Y 100 From NYSE (CIT)

13:10 CITBQ CIT Group Inc (DEL) Preferred Series A 11/3/2009 Y 100 From NYSE (CI $A)

13:10 CITDQ CIT Group Inc (DEL) Non Cumulative Perp Pfd Conv Ser C 11/3/2009 Y 100 From NYSE (CI $C)


http://www.otcbb.com/asp/dailylist_detail.asp?d=11/02/2009&mkt_ctg=NON-OTCBB

[marayatano]

I know A, C and Government's preferreds have the same order of priority. So one will not be saved over the other.

Z has an undivided interest in bonds.

All will eventually be on the pinks.

It is to be assumed that preferreds and commons will not survive after emergence from BK.

Good luck. I hope you did not put too much in to CIT A.

imo

[I-Man]

Citi and CIT Are Primed for Upside,
by Jim Cramer, 9/29/2009, 1:54 PM EDT


Citigroup's on the move, so is CIT . I think that Citigroup will be the biggest beneficiary of the new plan to buy toxic assets, because it is basically running its SIV as discontinued operations and it could benefit from the new program. CIT is about the possible IndyMac link-up courtesy of John Paulson, a real smart guy who was negative about mortgages before it paid to be negative. Dan Freed on CIT CIT Surges on Report of IndyMac Deal I put both of these up there as examples of companies that won't die, and because they won't die, they live. I know that seems a little circular in reasoning, but because Citigroup never suffered a run like Wachovia and Washington Mutual did, it made it and as our flagship site mentioned, it is safe. If it is safe, it can go higher.

Because no one forced CIT into bankruptcy, it can live to play again, and when I read in the New York Post that Paulson owns CIT debt, I realized that he's powerful enough to save this company, particularly because he is one of the investors in IndyMac and knows his way around the bottom of the debt barrel. These two stocks represent lottery tickets that are no longer rip-ups because they have made it out of the "critical care" stage and are recovering.

I would buy them both.

[sf]

M, i was looking up the pink sheet ticker and the commons are citqp.pk and the b pref is citqo.pk. the cit pref a are still on nyq. you think they will be saved and converted to the new common for cit after turnout? why only pref b on pink and not pref a?

[marayatano]

"There will be no BK- trust me."

I hope you did not load up on CIT equity. The CIT Board approved the BK filing.

[I-Man]

CIT Obtains Additional $4.5 Billion in Financing



October 28, 2009 01:12 PM Eastern Daylight Time
CIT Obtains Additional $4.5 Billion in Financing Through Expansion of Existing Secured Credit Facility
Addresses Unfunded Financing Proposal from Carl Icahn

NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today announced that it has expanded its current $3 billion senior secured credit facility by an additional $4.5 billion. The new $4.5 billion tranche, which is being provided by a diverse group of lenders, including many of the Company’s bondholders, will be secured by substantially the same assets as the existing $3 billion tranche and any additional collateral that becomes available as a result of the Company’s refinancing of certain existing secured credit facilities.

“We believe this secured financing will serve the best interests of all stakeholders and will allow us to better position CIT for the future,” said Jeffrey M. Peek, Chairman and CEO. “This expanded credit facility will allow us to continue to serve our existing small business and middle market customers as we advance our restructuring plan.”

[RonnieD]

Preferred A has no common conversion rights. Preferred C is 3.96 common. A lot is going on here.
My plan is to hold until Thursday, upon which if there is no alternative accepted, I plan to sell before the bondholders can vote on either the prepack bk or the debt swap. If there is a debt swap, value may hold, or even pay off in the long run..
I am in this only for a wild card which could still happen, but I have no illusions...

[sf]

what is the common conversion rate for preferreds? on the cit message board they said that we would retain 9% value but preferreds would be converted to common. is this true and what does this mean for us?

[RonnieD]

yes, more needs to occur here in the coming weeks, then we get a new CEO in January.
Preferreds will react to common, they just don't trade much at all when the official market hours are closed, as the common does.

[I-Man]

?? Low volume last few days seeing daytrader shorts run values down is discouraging...

Yet recent GS events plus hedge fund plus BAC and Icahn should have seen this stock a lot higher.

Today Germany has CIT commons bought into running it to 1.30 premarket, and Bernanke speak today if I understand him, is changes in all banking and corp operations coming for this new paradigm we are entering after credit crisis, mentions no more corp debt instruments and a push for people to return to investing into common & preferred shares (ownership) of corp stocks like they used to for decades before...

[RonnieD]

i picked some of this up today.
what are your thoughts on todays news
also looking into classes C and Z.

[I-Man]

There will be no BK- trust me.

Do you not find it funny Peek was voted for another 1 year contract last month, then yesterday all of sudden he is resigning in 60 days now?

I and others expect behind scenes bondholders gave him and CIT Board an ultimatum- full blown BK where everyone loses, OR you force Peek to leave ASAP as he was the reason all of this happened in first place to a respectable long time corp tied to millions of US small business people....

And yesterday alone both the CIT-A preferrd and CIT common reboudned a lot of the price decline from the panic selling they endured since pre mkt?? VERY resilient..

[marayatano]

ETrade: CIT.PR.A

Very speculative!

Not worth the risk.

In BK, it will be worthless. In a reorg outside BK, almost worthless.

If are going to play the scalp, then good luck. Very thinly traded especially when you have to compete to sell.

IMO, of course.

[sf]

try CITprA i think etrade lists it different or CITpA