CIT Stock Spikes on News of Bondholder Deal
CIT Group, which had been flirting with bankruptcy, has secured some last-minute funding. The news sparked a massive surge in CIT stock.
The US federal government had given CIT Group over $2 billion in TARP funding, and recently turned down a request for yet more financial aid.
If no new financing were arranged, CIT, one of the nation’s largest lenders to small and midsize businesses, had been expected to file for bankruptcy protection as soon as this afternoon. An announcement of CIT’s agreement was expected today, people briefed on the matter told DealBook.