Washington, D.C., partner Don Workman was quoted in the November 2, 2009, Wall Street Journal article, "CIT's Swoon Hits Taxpayers."
According to the article, the $2.3 billion in taxpayer money spent to save CIT Group Inc. is likely to be wiped out, as the lender prepares to file for bankruptcy protection in a high-stakes restructuring plan aimed at keeping the firm in business. Financial firms such as CIT have historically been sold off or wound down after a Chapter 11 filing, for fear that customers will draw down lending lines and cause a run on the bank. But CIT expects to have enough creditor support to complete a prepackaged reorganization by year-end, a relatively short period for a bankruptcy case of its size, according to the article.
CIT's bankruptcy filing "is a risky proposition," said Workman. "It's far from a certainty that they will be able to exit . . . because of all the challenges a financial services company will face, particularly in this market."