Struggling lender CIT Group is warning that it might still file for bankruptcy even if it completes a revised debt restructuring plan, according to a regulatory filing Monday.
The New York-based lender to small and midsize businesses is trying to slash its near-term debt burden.
On Friday, it sweetened the restructured exchange offer to current bondholders as it tries to ensure the offer's success. The revised offer gives bondholders a better interest rate and shorter maturities on new debt.
The revised offer would also give the government a 5.4 percent stake in the lender, up from a proposed 2.4 percent under the original plan. The government provided CIT Group $2.3 billion in loans last fall amid the peak of the credit crisis.
