bankruptcy cit
Is CIT worth buying at around $1? (Stocks)?
I am not sure if I should invest in CIT. Will it turn around? What was the conditions in the deal made in July to save it from bankruptcy?
The company is trying to get the bondholders to sign up for a plan that will just dilute their bonds anyway, and if they go Chapter 11, then they will still lose.
Your risk is your entire investment. I would avoid. My bet is a pre-packaged bankruptcy. Stock holders will lose big time in that scenario. End game in a corporate BK is a wipe out for stock holders, 99.999999% of the time. CIT would fall in this category if BK occurs.
Don’t get fooled and be sucked in on the dead cat bounce after the stock is whacked on a BK filing.
http://en.wikipedia.org/wiki/Dead_cat_bounce
10-05-2009
CIT bondholders should sell or prepack-CreditSights
http://www.reuters.com/article/bankruptcyNews
10-07-2009
Pimco Has Quit CIT Bondholder Steering Committee
http://online.wsj.com/article/BT-CO-20091007-713763.html
10-12-2009
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Understanding the Instant Impact of the CIT Bankruptcy Plan on Lawyers, Their Clients and Future Cases $250.00 … |
