CIT Group, the U.S. lender caught in a liquidity crunch which may lead to a bankruptcy filing as soon as Monday, had planned for government assistance as a first and second resort, a senior Obama administration official said, according the Wall Street Journal.
“Their Plan A was: Seek assistance from the government … And their Plan B was: ask again,” the official said, according to a report published on Saturday.
Last weekened, CIT and government agencies began to discuss ways the government could assist, however by Wednesday, the U.S. Treasury said the government would not provide financing to help the company.
A CIT spokesman told the Journal the company had taken steps to “stabilize” its funding model, manage its expenses and maintain its liquidity, according to the report today.
CIT was negotiating with creditors late Friday about a potential private sector rescue, the Journal said.