Skadden is representing CIT Group Inc., a provider of financing to small businesses and middle market companies, which has emerged from bankruptcy protection – only 40 days after filing.
In confirming the prepackaged plan of reorganization on December 8, Judge Allan Gropper of the United States Bankruptcy Court for the Southern District of New York, called the recent vote supporting the deal "an enormous achievement." CIT won support from approximately 90 percent of voting debt holders for the reorganization. The reorganization plan, which reduces CIT’s total debt by approximately $10.5 billion, was designed to provide the company with a stronger capital structure and improved liquidity profile. The plan enhances capital ratios to levels that exceed regulatory requirements. CIT’s new Common Stock is now trading on the NYSE. In aggregate, CIT will issue 200 million shares of new Common Stock to eligible debt holders in exchange for their claims against the debtors.
The filing was the largest prepackaged bankruptcy solicitation ever; ranks as one of the largest by a financial institution; and is the fifth-largest bankruptcy, by assets, ever.
Skadden partner Martha McGarry recently was named "Dealmaker of the Week" by The AmLaw Daily for her role the CIT Group's restructuring and the American Express-Revolution Money transaction.