CIT had good news and bad news last week. The good news was that major bondholders step up to the plate with a $3Billion rescue plan.
The bad news is that CIT, one of the nations largest lenders to small and mid sized "retail" firms still needs to pay off $7 billion in debt maturing oover the next year.
Today they stated that " bankruptcy" is still possible. If this shoe drops it will be more bad news for all commercial property owners who lease space to small and mid sized retail firms.
The bankruptcy of CIT could cause many more retailers to go out of business creating another tidal wave of vacancies.
The word from Washington is that the Small Business Administration may receive about $15 billion in furing in the near future. However the SBA has been both under-funded and under-staffed for the past 8 years. Even if the SBA obtains the funding it will take months to place the funds into the pipeline.
BIll McInerney
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