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The Bust that Worked

CIT's bankruptcy fuels the debate about resolving financial failures.

November 6, 2009

CIT might just be that rarest of things: a financial-services firm that emerges from bankruptcy largely intact. The small-business lender filed for Chapter 11 protection on November 1st with the backing of most bondholders in a so-called "prepackaged" filing. A judge this week agreed to rule on its reorganisation plan on December 8th. If all goes well, a new, creditor-owned company, shorn of $10 billion of debt, could be up and running by the beginning of next year. Read more...

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