Getting your player ready...
NEW YORK — CIT Group, the bankrupt 101-year-old commercial lender, won court approval Monday to borrow as much as $500 million to issue letters of credit that guarantee its debts.
U.S. Bankruptcy Judge Allan Gropper in Manhattan approved the loan from a group led by Bank of America Corp. He allowed CIT to borrow $125 million on an interim basis earlier this month.
CIT’s existing $750 million letter-of- credit facility isn’t sufficient because it expires in May and the group of 27 banks that extended the loan won’t extend its maturity, according to court papers. Also, the company has borrowed all of the $3 billion available under a senior loan package. Bloomberg News
