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From: maceng2	7/24/2009 7:32:33 AM
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CIT May Sell Railcar, Aircraft Leasing Divisions (Update3) online.wsj.com By BOB MCGOUGH NEW YORK -- Embattled lender CIT Group Inc. amended the terms of its cash tender offer critical to its future in a regulatory filing on Friday. The filing seeks to "clarify" terms of the tender offer for floating rate senior notes due Aug. 17. If the offer is successfully completed, the company and steering committee "do not intend for the Company to seek relief under the U.S. Bankruptcy Code but rather to pursue restructuring efforts through other means." The company said in the filing it couldn't assure that the restructuring effort would be successful. If the tender offer does not succeed, the filing said the company is not allowed by the terms of recent rescue financing it received to use the proceeds of the tender to pay off $1 billion in maturing notes on Aug. 17, unless it receives alternative financing. Not paying off the notes may lead CIT to file for bankruptcy protection, the filing said. Also, members of the steering committee for the rescue loan, and each new lender on that loan, will tender their Aug. 17 notes in the offer, the filing clarified. The company said the early delivery payment per $1,000 principal amount on notes in the tender was increased by $50. Notes tendered before 5 p.m. EDT on July 31 will be bought for $825 per $1,000 face amount, and those tendered later will receive $775.

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