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CHARLOTTE — Shares of CIT Group Inc. plummeted nearly 20 percent in premarket trading Tuesday, as the commercial lender delayed filing its quarterly report because of ongoing restructuring efforts as it tries to avoid bankruptcy, according to a regulatory filing.
New York-based CIT, one of the nation's largest lenders to small and midsize businesses, said restructuring work during the past several weeks prevented the company from filing on time the report for the three months ended June 30.
The company said it expects to file its quarterly report by Monday.
If CIT collapsed, the retail sector would be hit particularly hard. CIT serves as short-term financier to about 2,000 vendors that supply merchandise to 300,000 stores, according to the National Retail Federation. Analysts say 60 percent of the apparel industry depends on CIT for financing.
In July, CIT received an emergency $3 billion loan from some of its largest bondholders. Last week, CIT said it had drawn down that loan and suspended preffered dividends.
CIT also reaffirmed last week that it has received enough offers to complete a debt repurchase program that it launched last month. The company said that almost 65 percent of $1 billion in bonds due Aug. 17 had been tendered for repurchase. The company needed 58 percent of the debt to be tendered for repurchase to complete the deal. The tender offer expires Aug. 14.
CIT Group has warned that if it doesn't complete the tender offer it might have to file for bankruptcy protection.
Shares of CIT fell 28 cents, or 19 percent, to $1.20 in premarket trading Tuesday.
