Americas awards: restructuring

Author: | Published: 25 Mar 2010

Restructuring deals of the year

The size of the pre-pack solution in this transaction is staggering: $20 billion of publicly traded debt in over 300 issues was renegotiated without objections at the confirmation hearing. At filing, the company listed $71 billion in assets and $64.9 billion in debt. It was the largest pre-packaged bankruptcy solicitation ever.

CIT had faced intricately entwined challenges. There was public-held debt among sophisticated accredited and non-accredited investors with diverse holding, foreign and domestic holders, traditional bank loans and money borrowed from the alternative investment community. In addition, the group had guaranteed many foreign financing facilities, securitisations, conduits and a Goldman Sachs total-return swap.

Skadden Arps Slate Meagher & Flom was lead counsel to CIT Group, with Sullivan & Cromwell acting as special counsel. Curtis Mallet-Prevost Colt & Mosle was conflicts counsel, Paul Weiss Rifkind Wharton & Garrison represented bondholders and Sonnenschein Nath...