Egan Says CIT Investors Ought to Reject Exchange

By Pierre Paulden

Oct. 6 (Bloomberg) -- CIT Group Inc. bondholders should reject attempts by the 101-year-old commercial lender to swap debt, as the exchange won’t help the company return to profitability, according Egan-Jones Ratings Co.

Bondholders should hold their investments because the securities are worth more if the New York-based company is liquidated, Egan-Jones President Sean Egan said in a telephone interview from Haverford, Pennsylvania. Creditors could realize 82.5 cents on the dollar upon liquidation, he said.

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