CIT Group's prepackaged bankruptcy has the backing of an overwhelming majority of bondholders and is designed to put the lender back in business after reorganization under Chapter 11 protection. If the lender emerges from bankruptcy as planned, it will be largely owned by creditors. "The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small-business and middle-market customers, two sectors that remain vitally important to the U.S. economy," said Jeffrey Peek, CIT's outgoing chairman and CEO. In the process, taxpayers are almost certain to lose their $2.3 billion investment in the firm.

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