CIT misses annual accounts filing deadline

08/03/2010
CIT Group said that it lost about $900 million in the fourth quarter, and $4 billion in all of 2009. The company made the announcement in an SEC filing notifying the regulatory agency that it would miss the March 1st deadline for filing its 2009 annual report. Instead the company said it expects to complete and file the Form 10-K on or before March 16, 2010. It went on to say that the annual results, which relate entirely to continuing operations, include a $692 million goodwill and intangible asset impairment charge, increased provision for credit losses and reduced net interest revenue, and a higher level of professional fees, as a result of the company's liquidity problems, and the weak economy. The loss for the 2008 period was a loss of $2.9 billion, which included a $2.2 billion loss from a discontinued operation (the sale of the company's home lending business and a $468 million goodwill and intangible asset impairment charge) so the size of 2009’s loss is great indeed. CIT said the $4 billion loss is expected to be essentially offset by the impact of reorganisation (primarily the cancellation of indebtedness) and fresh start accounting adjustments. The last two years have taken their toll on the company’s share price, its management, its financial standing and position in its key leasing markets. Putting it bluntly, it must have been a nightmare for the many people involved, and now everyone must surely be looking to how the new boat will float.

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