NEW YORK — CIT Group, the bankrupt 101-year-old commercial lender, can borrow an immediate $125 million and make intercompany loans as it attempts to exit bankruptcy on a fast track and keep its customers funded. U.S. Bankruptcy Judge Allan Gropper on Tuesday approved all of CIT’s routine “first-day” motions, allowing it to borrow an interim $125 million from a total $500 million “debtor-in-possession” loan from Bank of America. CIT can also pay employees and vendors.
“We are on a very fast track,” Gropper said, setting a Dec. 8 date to consider a rough outline of CIT’s so-called prepackaged plan and a final confirmation order.
CIT lawyer Greg Galardi said the payments are needed to keep CIT, and critical parts of the U.S. economy, running.
Gropper also approved more unusual requests, such as CIT’s bid to use intercompany transfers to fund operations. CIT expanded a $3 billion loan it received in July with another $4.5 billion Oct. 28. Galardi said the so-called expansion facility was made to CIT’s subsidiaries. CIT is giving liens on its assets to the subsidiaries.
