The company sold his company loans to fund Lone Star in the amount of $ 1.5 billion and 4.4 billion U.S. dollars of the debt is perceived that are part of an effort to help industry in difficulty, the mortgage.
01 July. 2008 9:59 AM

(AP) - CIT Group Inc., said Tuesday that his company sold loans to Lone Star Funds for $ 1.5 million in cash and 4.4 billion U.S. dollars debt, moving to the scene in difficulty of mortgages and focusing on its trade finance.

The company is also the sale of 470 million for the construction of housing Vanderbilt portfolio of mortgages and Finance Inc. to a loss of around 300 million U.S. dollars. CIT is expected, a combination of the two offers, cash flow of about 1.8 million U.S. dollars.

“These sales determination of all our loans for the housing business, with the uncertainty regarding this class of assets, and the progress of our strategic transformation into a society in the financing of trade,” said Jeffrey Peek, CIT, President and CEO, in a Statement.

The house consists of loans of U.S. $ 9.3 billion in assets and operations in connection with the service. The Centers for services, which employ about 300 people, in Marlton, New Jersey and Oklahoma City, Oklahoma, in the second quarter of CIT expects a record of 2 billion U.S. dollar loss in the segment of the mortgage loans.

The sale of portfolios due to be completed this month, while the transfer of the service platform will be completed until the first quarter of 2009.

It is simply the latest attempt by ICT to minimize risks and improve liquidity. Since 1 April, triggered CIT 1.6 million U.S. dollars in new values, the completion of asset-backed securities, financing of about 1.5 million U.S. dollars, sold more than 2 billion U.S. dollar assets and received 3 million U.S. dollars for long-term financing the installations from Goldman Sachs

JP Morgan Chase & Co. and Morgan Stanley acted as financial advisor for CIT. Wachtell, Lipton, Rosen & Katz and McKee Nelson served as legal counsel.

Like other companies in the financial services, CIT has struggled in recent months in the middle of a serious deterioration in the mortgage and credit. CIT has significant losses in their housing loans. They no longer enough, new mortgages and re-joining the commercial financing as part of its efforts to strengthen the basis of capital and liquidity.

Standard mortgages have bee increase since mid-2007, which forced many banks to support