A deal was struck between the directors of CIT Group and its important bondholders to avoid bankruptcy. CIT Group is a major lender to small businesses. Presently, CIT is in tremendous amount of debt and hopefully, this deal will provide them with some time to manage their business model.

CIT Group had already planned to file for bankruptcy by Monday if no capital could be squeezed from the investors.
The deal would provide CIT with $3 billion from its bondholders at the rate of 10.5%.

CIT Group is a 101 years old company. For some time, regulators were confused whether to save it from going bankrupt or not. The final decision was made after considering the fact that CIT Group helps several small and midsized businesses and poses no threat to the global financial system.

Now that CIT Group has been given some time, let’s see what it does with it.