Skadden is advising CIT Group, which filed for Chapter 11 in bankruptcy court on November 1, 2009, listing $71 billion in assets and $64.9 billion in debt. The filing is the largest prepackaged bankruptcy solicitation ever; ranks as one of the largest by a financial institution; and is the fifth-largest bankruptcy, by assets, ever.
CIT won support from approximately 90 percent of voting debt holders for the reorganization. The prepackaged plan is designed to allow CIT to move quickly through Chapter 11 and emerge from bankruptcy with a new business model by December 31, 2009.
Under the plan, bondholders will be able to exchange their debt for new, later maturing debt, as well as equity in a reorganized CIT. The reorganization would eliminate approximately $10 billion of the company’s debt. None of CIT’s operating subsidiaries are included in the filing and operations will continue as normal.