CIT received $2.3 billion in government aid last year, files for Bankruptcy

Dum, Dum, Dum

CIT group filed for bankruptcy on Sunday afternoon – but under a so-called prepackaged bankruptcy plan that will enable it to emerge from court protection by the end of the year, under the control of its debtholders.

CIT received $2.3 billion in government aid last year, a bailout that came in the form of preferred stock. That will almost certainly be wiped out in the bankruptcy process, the first realized loss in the government’s rescue of the financial system.

CIT was the nation’s largest provider of what is known as factoring, a type of lending used heavily by retailers. The company has spent months trying to reassure its clients that it will remain open for business as stores ramp up for the holiday season. Relatively few other companies serve as factors, and among them are other embattled lenders like GMAC.

Published in: on November 2, 2009 at 11:50 am  Leave a Comment  
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Catholic diocese based in the state of Delaware has filed for US bankruptcy protection

The bankruptcy falls on the eve of a civil trial involving sex abuse.

The bishop of the diocese said the move offered the best chance for victims of sexual abuse to be treated fairly.

He said that talks with the eight victims bringing Monday’s case had broken down, and there were fears that too large a settlement would leave the diocese without sufficient resources to compensate another 133 people with outstanding claims.

WTF?? 133 claims??? Why I think sexual abuse cases are horrific, but 133 of them? If its true the story should be here, if its not true, the story should be here. 133 claims for one diocese, that is some very busy priests.

Wilmington is the seventh diocese to seek bankruptcy protection since an abuse scandal in Boston archdiocese in 2002.

It has so far paid out $6.2m to settle sexual abuse cases and has settled with other victims who did not go to court.

The largest pay-out to date was by the Los Angeles archdiocese, which settled 508 cases with $660m in July 2007.


Published in: on October 20, 2009 at 8:37 am  Leave a Comment  
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