CIT Close to Bankruptcy

The fate of CIT, the 100 year old lender with prior focus to small business and franchise lending, is pending, as the large commercial lender readies a plan to hand control to its bondholders by an October 1 deadline. The WSJ reports that many involved didn't expect the companmy could avoid seeking Chapter 11 protection.

While CIT has been out of the franchise lending business since December, 2008, existing loan contracts with franchisees will be in the mix. Chapter 11 is just reorganization, so don't look for relief.