The news comes after the company, a leading lender and supportive participant in the ASC market, drew down $7.3 billion of bank lines last week to help fund its operations following cuts to CIT’s debt ratings. CIT executives have indicated the company intends to sell more assets.
CIT CEO Jeff Peek is cutting back CIT’s exposure to consumer lending and focusing on commercial lending, according to reports. CIT is one of several finance companies hit hard by the struggling U.S. economy and subprime mortgage crisis. The current challenges facing CIT is evidence of a potentially growing challenge for ASCs to secure debt solutions.
However, Mr. Peek’s efforts to keep CIT operating have helped maintain investor confidence in the company.
“They have been survivors and, if history is any guide, they can get through this," says James Palmisciano, chief investment officer at Gracie Credit Opportunities Fund, which is considering buying CIT shares, according to a published report.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.