Speculators Hit The Exits On CIT Group (CIT)
Tweet
Share
E-mail
Get Alerts CIT Hot Sheet
Join SI Premium – FREE
Shares of CIT Group, Inc. (NYSE: CIT) are trading near the lows of the session as speculators view news of a debt exchange or pre-packaged as a death-knell for the common shares.
CIT is looking at one of two options: a deal with bondholders to swap the debt for new debt and/or equity or a pre-packaged bankruptcy. A decision could be made Thursday or Friday.
In either scenario the current common shareholders could be entirely wiped out.
Shares of CIT are down 46% to $1.19.
Speculators have recently been playing the stock on hopes there would be value in the CIT equity after reworking its debt. In fact, yesterday shares of CIT rose 32% on reports that hedge fund guru John Paulson would merge the company with the leftovers of failed IndyMac. This appears to have just been a bogus rumor.
CIT is looking at one of two options: a deal with bondholders to swap the debt for new debt and/or equity or a pre-packaged bankruptcy. A decision could be made Thursday or Friday.
In either scenario the current common shareholders could be entirely wiped out.
Shares of CIT are down 46% to $1.19.
Speculators have recently been playing the stock on hopes there would be value in the CIT equity after reworking its debt. In fact, yesterday shares of CIT rose 32% on reports that hedge fund guru John Paulson would merge the company with the leftovers of failed IndyMac. This appears to have just been a bogus rumor.
You May Also Be Interested In
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Paulson & Co. (PCI), Hedge Funds, BankruptcySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
