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CIT delays quarterly report

TROUBLED US bank CIT has delayed filing its second-quarter financial report with the US Securities and Exchange Commission (SEC) and repeated warnings that it may file for bankruptcy.<br /><br />The bank, which lends to thousands of US firms, said it could not meet the deadline for filing with the SEC without &ldquo;unreasonable effort and expense&rdquo; due to restructuring efforts aimed at saving it from collapse. CIT repeated its forecast of a second-quarter loss of more than $1.5bn (&pound;910m) and said that operating losses, credit-rating downgrades and regulatory and funding restrictions had cast &ldquo;considerable doubt&rdquo; on its ability to continue as a going concern.<br /><br />The bank lost $2.3bn last year, including a $2.1bn loss from discontinued operations related to the disposal of its home-lending business.<br /><br />CIT&rsquo;s six largest bondholders agreed last month to provide it with $3bn in emergency funding, but the bank is still working to restructure its debt and is also conducting a review of businesses and assets that it could sell to raise funds.<br /><br />The 101-year-old bank has also launched a tender offer for $1bn of floating-rate notes due 17 August. It said it would use the funding from bondholders to complete the tender and make payment on the notes if the tender offer was unsuccessful.<br /><br />But the company said that if the tender offer fell through and it was unable to secure alternative financing, it would file for bankruptcy.<br /><br />CIT was forced to cast around for emergency measures to save it from collapse after President Obama&rsquo;s administration made it clear last month that the lender would not receive a government bailout.