CIT: Still Lending, "We have the Money to Continue"

We have just returned from Las Vegas and the  Restaurant Finance and Development Conference.

CIT was a Premiere event sponsor and had staff present at the conference.

Bob Bielinski, the CIT Managing Director, presented a short update; CIT is still lending, the bankruptcy filing affected its parent entity only, and that they have money to lend. He noted the hope that CIT would clear any issues at its upcoming December 11 Chapter 11 hearing successfully.

Most lenders at the conference noted they were focused on large franchisees, e.g., those about $7M in combined EBITDA that are more likey to survice the recession. Cash/equity infusion of 35 to 45%, higher interest rates and absolutely stellar business plans and franchisor concept strength is needed for approval.

I'll add a link once one is available.

John A. Gordon

Chain Restaurant Earnings and Econiommics Experts

www.pacificmanagementconsultinggroup.com