CIT Group set to exit bankruptcy protection

CIT's bankruptcy protection filing was the fifth largest in US corporate history

US lender CIT Group's reorganisation plan has been approved by a judge, paving the way for it to exit bankruptcy protection within days.

The plan will reduce the group's debt by $10.5bn (£6.5bn). It had already been approved by bondholders.

CIT said in a statement it expected to emerge from bankruptcy on 10 December.

CIT suffered in the recession as its many bad loans were exposed. It filed for bankruptcy protection on 1 November after failing to restructure its debt.

"We can't ignore the need for restructuring," Judge Allan Gropper said in approving the plan.

"If a company that has fundamental value - as I'm assured this one does - does not restructure and does not get in a position to take its appropriate place in the marketplace it will ultimately fail entirely, and that will do no-one any good."