CIT Group Said to Weigh $3 Billion Financing Offer

July 19 (Bloomberg) -- CIT Group Inc., the 101-year-old commercial finance company seeking to avoid collapse, is considering an offer from some of its largest bondholders to provide $3 billion in bridge financing, according to two people briefed on the firm’s deliberations.

The lender’s board was scheduled to meet today to discuss the offer, which would give the New York-based company a chance to restructure its debt outside of bankruptcy, said one of the people, who declined to be identified because the talks are confidential.

CIT needs time to strike deals with bondholders to reduce debt after the U.S. wouldn’t give the firm a second bailout. CIT, which has reported $3 billion of losses in the last eight quarters, received $2.33 billion in funds from the U.S. Treasury in December and hasn’t been given access to the Federal Deposit Insurance Corp.’s debt-guarantee program.

Earlier, bondholders held calls to discuss whether to swap some claims for equity to reduce indebtedness, according to a person familiar with the situation. CIT finances about 1 million businesses from Dunkin’ Brands Inc. to Eddie Bauer Holdings Inc.

CIT’s $300 million of 6.875 percent notes due in November rose 7.5 cents on the dollar to 64 cents July 17, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Shares rose 29 cents, or 71 percent, to 70 cents in composite trading on the New York Stock Exchange. link.....