Commercial lender CIT Group says it has received US$4.5B in credit from lenders, bondholders as it tries to avoid collapse

Cindy Allen

NEW YORK , October 28, 2009 (Associated Press ) – CIT Group says it has received $4.5 billion in credit from lenders and bondholders as it tries to avoid collapse.

The New York-based lender has been trying for months to restructuring its operations and reduce its debt burden to avoid bankruptcy.

CIT Group, one of the nation's largest lenders to small and mid-sized businesses, is in the middle of a restructuring plan aimed at reducing its near-term debt by $5.7 billion. CIT has twice sweetened the offer to bondholders in an attempt to complete the deal.

It has already received one lifeline from lenders and bondholders, receiving a $3 billion loan over the summer. The new loan is being financed by the same group.

CIT has warned it still might need to file for bankruptcy protection even if it can complete its restructuring plan.

Shares are up 17 cents, or 17.7 percent, at $1.13.

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