Monday, July 20, 2009

CIT gets a lifeline

CIT used its "phone a friend" card, by calling its bondholders who decided to giveit $3 billion, instead of letting Goldman Sachs and JPM carve up the company. Some debt will be converted into equity, and some will be converted into new debt.

So what does it mean when a company, that was on it's deathbed, can get $3 billion over the weekend in "sub-prime" financing?

Maybe it means some people think that the economy will start to get better.

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