Bloomberg broke
the following story today, reporting that CIT Group Inc.(CIT), while standing on the precipice of bankruptcy earlier this week, rejected a $2B rescue financing offer from GE Capital. If we are to believe the publicly stated motive behind the rejection of GE's offer - the GE offer promised a cash injection a full 8 days later than the time frame
offered by existing bondholders - it becomes alarmingly clear just how perilous a situation CIT found itself in.
To stimulate reader's minds in their pursuit of an alternate justification for CIT's rejection of an offer that contained terms more favorable than was available from current bondholders, we will provide a set of figures below. Below we have a list of the top three aircraft Lessors in the world as determined by the number of aircraft owned by each entity. The number in parenthesis represents the size, in number of aircraft owned, of each company's fleet.
- General Electric (1500)
- American International Group (980)
- CIT Group Inc. (300)
It seems that if today's financial markets could be converted entirely to numerical representations and plugged into an Excel spreadsheet, the error phrase "circular reference" would flash repeatedly.
*long GE
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