[quote=outtamojo]I have some of their dec 2010 bonds, bot at ~average of 60 cents on the dollar. The prepack promises 70 cents of new debt + equity. If by some miracle the exchange passes they offer 85 cents new debt + equity. I may just flip them -depends on their story once this thing blows over. CIT’s gotta find a way to get cheaper long term funding but new CEO and new board at least gives them hope. Oh, and they gotta find a way to get out from under Icahn.[/quote]

I believe the 70 cents INCLUDES the estimated value of the new equity. So, for example, 60 cents on the dollar of face value new debt plus 10 cents of book value new equity. It’s not entirely clear but that’s the way I read it – and it makes more sense given how crappy CIT’s assets are. But I could be wrong.