CIT says bankruptcy filing still a possibility

NEW YORK -- The commercial lender offered the grim assessment only a day after major bondholders agreed to provide it with a $3 billion loan. However, CIT says the loan might not provide enough relief to cover upcoming debt maturities.

CIT Group says it still needs to pay off about $7 billion in debt maturing over the next year, including $1 billion in August. It has launched an offer to repay that $1 billion in maturing debt at a discount.

CIT turned to bondholders for help after the government refused to save the company last week.