Cit Grp. Pfd A (fka CIT-A)

[Joe Stocks]

CVR's

CVR's *are* defined.

60 days after the company emerges from BK, that will be the 'Measurement Date'. If on that date, the value of the common stock (in the market) is high enough that the unsecured senior debtholders get more than 30% of par from the common they receive in the BK, there will be 'excess value' created.

That 'excess value' will then be allocated via CVR to the Senior subdebt, then once they get 100% of par, to the Junior subdebt...then once THEY get 100% of par, it will allocate shares to the preferred CVR.