Reichwald Talks to Associated Press About Impact of CIT Bankruptcy 

“Retail Faces Uncertainty as CIT Enters Bankruptcy”
Associated Press 

November 2, 2009 – In the wake of the Nov. 1 bankruptcy filing by key lender CIT Group, Inc., the Associated Press looked to Hal Reichwald, Manatt’s Banking and Specialty Finance practice group co-chair, for analysis of the aftershocks to the nation’s troubled economy.

CIT provides credit to thousands of small and mid-sized businesses, and is a critical part of the flow of capital in the retail sector.  The company filed for Chapter 11 bankruptcy protection after months of struggling to avoid collapse.  According to the Associated Press, they expect to emerge from bankruptcy by the end of the year.

With much of the merchandise for the upcoming holiday season already at distribution centers, it is the important 2010 spring season that may be the most affected.

Reichwald told the Associated Press that CIT's bankruptcy will likely force the company's customers to look elsewhere for financing.

"If I was a small businessman, I would say to myself, 'I have to find alternatives,'" Reichwald said in the article.  "In this marketplace, there aren't a lot of alternatives."

The article and Reichwald’s commentary were picked up by more than 200 news outlets, including the Chicago Tribune, Los Angeles Times, New York Times, and San Francisco Chronicle.

Click here to read the full article.