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CIT reaches $3 billion rescue deal with bondholders: WSJ

SAN FRANCISCO (MarketWatch) -- CIT Group Inc. has reached a $3 billion rescue-financing agreement with key bondholders that will allow the business lender to avoid bankruptcy and restructure outside court, according to a media report Sunday.

The deal was expected to be announced on Monday, The Wall Street Journal reported in its online edition late Sunday.

The news followed reports over the weekend that CIT had been trying to negotiate rescue financing with a group of bondholders to avoid bankruptcy.

The 101-year-old lender to small- and medium-sized businesses could have filed for bankruptcy as early as Monday if it hadn't reached a deal.

A report by Dow Jones Newswires, also citing unnamed sources, said the plan being considered would involve new funds for CIT instead of a rollover of existing debt. The report said Morgan Stanley has been hired to advise CIT in the restructuring.

Evercore Partners Inc. also was hired as a bankruptcy adviser.

http://www.marketwatch.com/story/cit-in-talks-with-bondholders-on-rescue-reports