(Source: Business Wire)
Hedge fund manager logi Energy announced today that it has made an offer
to CIT Group's Board of Directors for a small portion of their middle
market lenders debt portfolio. The offer increases the options available
to the board as it works through restructuring and a possible
pre-packaged bankruptcy, which CIT is negotiating with bondholders.
"Our proposal provides CIT increased liquidity, without the complexity
of additional debt. This allows them to address short-term challenges
and extend the time period with which to deal with bondholders. We think
that the core of the CIT franchise is fundamentally sound and simply
needs the benefit of increasing consumer economic activity," said
Lorenzo Ortega III, CIO of logi. "It would be damaging to small
businesses nationwide, and CIT's shareholders, if the company was unable
to avoid bankruptcy. What we are proposing is to be part of the
solution."
logi Energy has offered in excess of $1B for a portion of CIT's debt
portfolio and anticipates closing a transaction within 30 days of
acceptance of the proposal.
"We think we could also provide opportunity for other purchases from
CIT" said Ortega.
About logi Energy, LLC: www.logipeakoil.com
logi Energy is a group of financial and engineering professionals with
substantial experience in finance, oil and gas exploration and
production, large projects and Energy. logi Energy has formed The Peak
Oil Value Fund, a focused Hedge Fund to purchase interests in, and
provide operating capital to, strategically valued, public and private
oil, gas and Energy centric companies with excellent management.
A service of YellowBrix, Inc.
