CIT Group Inc. (CIT) hammered down by almost 50% in premarket after a report

CIT Group Inc. (NYSE: CIT)  shares are down more than 48% to $1.15 in premarket trading as the commercial lender is reportedly trying to craft an exchange that would cut its debt and offer bondholders an equity stake in the company in a bid to avoid bankruptcy.

The Wall Street Journal says CIT Group is preparing an exchange offer that would eliminate up to 40% of its more than $30 billion in outstanding debt. It says the exchange would hand control to its bondholders and wipe out common stockholders.

The newspaper, which cites anonymous sources, says if CIT doesn't get enough support, it will restructure in bankruptcy court.