Little Bear Investments LLC Supports CIT Bond Exchange; Seeks to Discuss with Company Amending Terms of Exchange for Certain Classes of Long Term Debt

NEW YORK--(BUSINESS WIRE)--Little Bear Investments LLC, ("Little Bear") an owner of CIT Group, Inc. ("CIT") (NYSE:CIT) debentures, approves of today's release by the CIT Board of Directors and Steering Committee (collectively, the "Committee") of the Offering Memorandum, Disclosure Statement and Solicitation of Acceptances of a Prepackaged Plan of Reorganization (the "Bond Exchange"). The Bond Exchange is designed to reduce the direct and indirect unsecured debt in CIT by approximately $5.7 billion. In order to accomplish this, the Bond Exchange offers certain bondholders the right to exchange existing unsecured bonds ("Old Notes") for new secured bonds ("New Notes") plus additional consideration consisting of new shares of preferred stock ("New Preferred").

“We look forward to having a constructive discussion with the Committee regarding ways in which the offer to the Sub Debt can be adjusted such that the Bond Exchange is a success for all parties”

"We applaud both the intent to reduce outstanding indebtedness outside of bankruptcy court as well as the innovative structure CIT attempts to put in place to accomplish this task. However, we are deeply concerned with the consideration being offered three classes of Old Notes," commented Zachary Prensky, Managing Director of Little Bear.

Specifically, the 12.00% Subordinated Notes due December 18, 2018 (Cusip #s 125581FS2, 125581FS2) and the 6.10% Junior Subordinated Notes due March 15, 2067 (Cusip #125577AX4) (collectively, the "Sub Debt") are being offered absolutely zero New Notes and only a small amount of New Preferred.

"The Bond Exchange attempts to extinguish approximately $5.7 billion in indebtedness. In order to do so, over one hundred classes of debt are being asked to take a write down of 10 - 30% of the face value of their debt. However, holders of Sub Debt are being asked to voluntarily surrender 100% of their valid, existing claim against CIT solely in consideration of a small amount of New Preferred whose ultimate recovery or liquidating value is unknown. Furthermore, of the $5.7 billion in indebtedness CIT is attempting to extinguish, the Sub Debt comprises $1.89 billion, or approximately one third of the proposed extinguishment. In our opinion, this is extremely unfair to the Sub Debt holders and needs to be adjusted in order to ensure our full participation in the Bond Exchange."

Little Bear intends to hold a conference call on Tuesday, October 6th at 4:30pm EDT with other owners of Sub Debt to discuss in more detail our opinions regarding the Bond Exchange. Bondholders who wish to participate on this call are kindly asked to pre-register by emailing their name and affiliation to Bondholders@LittleBear.us. You can then participate by dialing (866) 939-8416 and use participant code# 8865161. International callers are asked to dial (678) 302-3532 and use the same participant code.

"We look forward to having a constructive discussion with the Committee regarding ways in which the offer to the Sub Debt can be adjusted such that the Bond Exchange is a success for all parties," stated Mr. Prensky.

Contacts

Little Bear Investments LLC
Zachary Prensky, 212-946-2607
www.LittleBear.us

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