CIT Group Inc., which has been a significant lender to small- and mid-sized printing companies, today filed for bankruptcy protection with the United States Bankruptcy Court for the Southern District of New York. In the past, CIT has supported the financing of significant equipment purchases, such as million-dollar offset presses, as well as merger-and-acquisition activity within the printing industry.
The filing for bankruptcy protection comes despite CIT receiving a US$2.3-billion bailout package from the United States government in the past year. None of CIT’s operating subsidiaries, including CIT Bank, a Utah state bank, were included in the filings.
The company’s reorganization plan is expected to reduce total debt by approximately US$10 billion, with a primary goal to “significantly reduce [CIT’s] liquidity needs over the next three years.” At the time of the filing, CIT held approximately US$71 billion in assets and US$65 billion in liabilities.
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