Note: Comments working! Thanks Ken!



From Bloomberg: CIT Bond Advisers Said to Push for Bankruptcy After August Swap (ht Bob_in_MA)

Even if CIT succeeds in getting 90 percent of the $1 billion of floating-rate notes due Aug. 17 swapped at a discount, the advisers will seek a so-called pre-packaged bankruptcy ... Should the CIT offer ... fail, Houlihan ... will recommend the steering committee let CIT file for bankruptcy before paying the August maturity ...

The "Tony Soprano" debt deal was just a delaying tactic. That appeared clear given the terms. And this is why the deal required the onerous 5% upfront fee - and significant overcollaterization - because it was BK if you do, BK if you don't.