PrefBlog

CIT Group will shortly be exiting bankruptcy:

CIT Group Inc., the 101-year-old commercial lender, won court approval of a plan to cancel old shares, shed debt and exit bankruptcy court protection with new stock worth as much $11 billion.

U.S. Bankruptcy Judge Allan Gropper in New York today confirmed CIT’s so-called prepackaged Chapter 11 reorganization plan, which already had creditor support when CIT filed for bankruptcy last month. The U.S. won’t recover much, if any of the $2.3 billion in taxpayer money used in a bailout of CIT, and shareholders will be wiped out.

“I recognize, literally, billions of debt have agreed to this plan,” Gropper said, adding that the plan could take effect on Dec. 10. “It’s an enormous achievement to have gotten the vote that you’ve gotten.”

I missed this when it came out, but here’s the latest in the David Berry saga:

On March 7, 2008, Berry commenced this application (the “Application”) pursuant to section 21.7 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”) for a hearing and review of the RS Stay Decision by the Ontario Securities Commission (the “Commission”). He submits that the RS Panel erred in refusing to stay the RS Proceeding and asks the Commission to set aside the RS Stay Decision and permanently stay the RS Proceeding.

[5] For the reasons set out below, we dismiss this Application. We conclude that UMIR are rules of RS and are applicable to and enforceable against Participants and other persons within the jurisdiction of the TSX.

A downdraft hit the preferred market today, with PerpetualDiscounts giving up 10bp (a portion of which is due to the lousy opening of IGM.PR.B) and FixedResets a hair on the wrong side of flat, losing under 1bp. Volume was normal.

This entry was posted on Tuesday, December 8th, 2009 at 8:14 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.