Creditors should push CIT bankruptcy after debt swap, advisers say

07/23/2009 | Bloomberg

Creditors should force CIT Group to restructure debt through a prepackaged Chapter 11 bankruptcy after its debt swap next month, said advisers to bondholders who rescued the lender. "A prepackaged bankruptcy shows the world they have a solution to their problems," said Martin J. Bienenstock of Dewey & LeBoeuf. "An open-ended bankruptcy creates uncertainty as to whether the company will survive or will liquidate."

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