Small business lender CIT Group said Friday it was awaiting the outcome of a key bondholder vote that could ultimately push the troubled firm to file for bankruptcy.
Creditors have been wrestling over whether to approve a restructuring plan proposed by the New York City-based firm earlier this month that is aimed at clearing out $5.7 billion in debt.
Bondholders had to submit their final say as of Thursday evening. By Friday morning however, the company had no details on whether bondholders had accepted the offer.
The company said it had received more than 150,000 ballots and that once the final tally had been reached the company's board of directors would make a decision about its fate.
The company also provided no details on when the vote count would be completed. If the plan is rejected however, it is expected CIT would have to seek bankruptcy protection.
Shares of CIT (CIT, Fortune 500), which have been flirting with a $1 share price since its troubles first came to light during the summer, slipped 13% in mid-morning trading to about 80 cents.
Separately, the company revealed in a filing with the Securities and Exchange Commission Friday that it had struck an agreement with Goldman Sachs (GS, Fortune 500) to reduce the size of a $3 billion loan it had originally sought from the Wall Street firm in June when its troubles first emerged.
In exchange for getting Goldman to reduce the size of the loan by $875 million to $2.125 billion, CIT Group will have to pay a fee of $285 million.
Goldman Sachs would be due a payment of approximately $1 billion if CIT were to file for bankruptcy, according to reports
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