A 101 year old commercial firm CIT Group Inc., crunching under the current economic situation and ever mounting debts, has filed for bankruptcy with which the firm is looking to cut about $10 Billion in debt. The decision came after the credit crunch dried up all of the company's funds and the US bailout and debt exchange offer failed.

CIT has filed for bankruptcy in the U. S. Bankruptcy Court in Manhattan. Under the filing, the company has revealed $71 Billion in assets as opposed to a $64.9 Billion debt. The country's Treasury Department has said that the Government, most probably, would not recover much.

The bankruptcy “will allow CIT to continue to provide funding to our small business and middle-market customers,” said Chief Executive Officer Jeffrey Peek. The bankruptcy filed by the company has been ranked as the 5th largest by assets. The company has been quick to assure that none of the firm's operating branches have been included in the filed bankruptcy and functioning everywhere would go on as usual.

The bankruptcy plan was approved by CTI's bondholders and lenders. Under the filed bankruptcy, creditors will end up owning almost the entire company.