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Washington – The large American commercial and consumer finance company, CIT Group Inc. bankruptcy protection last registered. The financial crisis caused the bank can not finance themselves eventually end up like Lehman Brothers.

With this bankruptcy protection, CIT hopes to reduce the total debt of about U.S. $ 10 billion. Registration protection performed on Sunday (1/11/2009).

“Under the plan, CIT hopes to reduce total debt to U.S. $ 10 billion, and significantly emngurangi liquidity needs in the next 3 years, increasing the ratio of capital and accelerate profitability,” said CIT said in a statement as quoted by AFP, Monday (2 / 11/2009).

In the registration of Chapter 11 bankruptcy court in Manhattan, the bank’s 101-year-old was reported total assets of U.S. $ 71 billion with liabilities of U.S. $ 65 billion.

CIT Group Chairman, Jeffrey Peek said the plan would allow the child to his efforts, including CIT Bank to continue to operate during reorganization.

This bankruptcy will be a setback for the U.S. government, which has menyuntukkan U.S. $ 2.33 billion to the CIT in December through the Troubled Asset Relief Program.

“We will be looking very closely developments. But because the company disclosure on the package before the bankruptcy has been made clear, the recovery against the holders of common and preferred stock will be minimal,” said U.S. Department of Finance spokesman, Andrew Williams was quoted as saying by Reuters.

CIT shares had reached a peak of U.S. $ 60 per share in the year 2007, but continued to spur trade and on Friday (30/10/2009) only for 72 cents. (Qom / dro)