Contact: John Hartgen
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(703) 739-0800
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href='mailto:jhartgen@abiworld.org'>
color='#0000ff' size='3'>jhartgen@abiworld.org
OTHER LENDERS
LIKELY TO FILL MIDDLE-MARKET LENDING GAP IN THE EVENT OF A CIT
BANKRUPTCY, ACCORDING TO LATEST ABI QUICK POLL
size='3'>August 6, 2009, Alexandria, Va.
size='3'>—A majority of respondents (60 percent) in a recent ABI
Quick Poll thought that other middle-market lenders would fill in the
gap if CIT were to file for bankruptcy. Fifteen percent of respondents
thought that a potential CIT bankruptcy filing would sharply reduce the
availability of credit to the middle market, while 14 percent thought
that a filing would only modestly affect credit access. Eight percent of
respondents thought that if CIT were to file for bankruptcy, it would
just be a reflection of the larger economic problems affecting the
lending market.
CIT Group Inc., a lender to
nearly a million small and midsize U.S. companies, was forced to turn to
bondholders for help last month after the government refused to save the
company—a sign that the government is pulling back on costly and
unpopular bank rescues. Had CIT been allowed to collapse, some experts
feared it would have dealt a crippling blow to the retail sector and
small businesses. CIT serves as short-term financier to about 2,000
vendors that supply merchandise to 300,000 stores, according to the
National Retail Federation. Analysts say 60 percent of the apparel
industry depends on CIT for financing.
ABI members and members
of the public were welcome to submit their response to the statement:
“What will be the biggest impact of a CIT
bankruptcy on the loan market?
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ABI’s Quick Poll is
posted on ABI’s home page,
href='http://www.abiworld.org/'>
size='3'>www.abiworld.org
size='3'>. ABI members and the public are invited to respond to a
question on a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff' size='3'>http://www.abiworld.net/quickpoll/
to access the results of previous
ABI Quick Polls.
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ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
12,000 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals, providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit www.abiworld.org. For additional conference
information, visit
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.