CIT Group Inc.(CIT) may slip lower ahead of bankruptcy grace period

CIT Group Inc. (NYSE: CIT) shares plunged heavily to $1.2 from yesterday’s close of $2.2 in pre-market trading on Wednesday as the commercial lender is fighting against a deadline to ensure that it does not need to file for bankruptcy in two more days. CIT Group Inc, is now considering a financing from Citigroup or Barclays that would cut its debt and offer bondholders an equity stake in the company to avoid bankruptcy. CIT is likely to plunge on Wednesday in anticipation of bankruptcy filing by the lender. CIT noticed heavy profit booking at higher levels on Tuesday from traders.