CIT secures $3 billion funding

New York-based bank CIT Group has approved a $3 billion rescue loan from major bondholders in order to avoid bankruptcy.  The loan is designed to give the company, which specializes in lending to small and mid-sized businesses, more time to restructure some of its debt payments. The Obama administration had said on Wednesday it would not offer a bailout to CIT. At least six large CIT bondholders, including Pacific Investment Management Company (Pimco), are said to be financing the rescue loan.  The company will attempt to re-negotiate a loan with the US Treasury once the deal with its bondholders is in place. The announcement will be welcome news for thousands of US businesses, particularly from within the retail sector, who are dependent on factoring, or short-term finance. CIT has 70 percent of the US market for this type of lending. CIT, which┬áreceived $2.3 billion of government bailout funding in December, faces $7.4 billion of debt due in the first quarter of next year. The lender celebrated a century in business last year. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *