Small business lender CIT Group Inc. recently announced that it will suspend dividend payments on some of its stock to improve liquidity, preserve capital and thwart bankruptcy.
The suspended dividends are for the company's four series of preferred stock. Payments on the company's equity units are not affected, CIT said. The company has also received the final $1 billion in a $3 billion credit agreement, with a "substantial" amount to be used to support its small business and middle market customers, CIT said in an Aug. 7 statement.
If CIT should file for bankruptcy, smaller mom and pop businesses may have their lines of credit cut off, which could potentially lead them to seek other alternative financing including from credit unions.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
