CIT Group Inc, the bankrupt 101- year-old commercial lender, won temporary protection from lenders seeking to collect losses from a non-bankrupt unit, as a judge said the unit must respond to some requests.
US Bankruptcy Judge Allan Gropper in Manhattan granted CIT’s request for a preliminary injunction in court documents filed yesterday. The protection will last until the company exits bankruptcy, or January 31 next. The order shields CIT Group/ Equipment Financing Inc from some demands by lenders.
The lenders and the units “shall negotiate and cooperate in good faith and use reasonable means to resolve any dispute related to calculation of the Required Payments,” said Gropper.
