CIT: slightly better odds than Lotto

CIT has paid a heavy price for a reprieve. A $3bn loan facility, signed off on Monday evening, lets the desperate US small business lender avoid a quick trip to the bankruptcy courts. But the rescuers have extracted tough terms from this desperate borrower. And survival is far from certain. The new facility is backed by nearly all the firm’s remaining unsecured assets, supposedly worth three times as much as the loan. It also comes with an interest rate 10 percentage points above Libor, accordi...