CIT Group (NYSE: CIT) reported Tuesday that it suffered a $1 billion loss in its fiscal fourth quarter, excluding a large one-time reorganization benefit, according to Associated Press.
The company also recorded a full-year loss of $4 million as losses from bad loans more than offset financial benefits from its bankruptcy reorganization.
The commercial lender emerged from bankruptcy protection on Dec. 10. Results for the year include a $10.3 billion pre-tax benefit from the reorganization.
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In the fourth quarter, the company earned $3.2 billion, including the reorganization benefit. Excluding special accounting procedures and other items related to its reorganization, its quarterly pre-tax loss was $1 billion.
Commercial net charge-offs, which reflects loans the company no longer expects will be repaid, totaled $385 million, or 4.77 percent of average finance receivables, in the fourth quarter.
Under its reorganization plan, the company canceled its common stock and issued new shares. Using previous shares outstanding, CIT Group lost a penny per share in 2009, and $11.06 per share in 2008.
CIT Group filed for bankruptcy protection on Nov. 1 after it failed to restructure outstanding debt and could not pay its bills.
The company's reorganization resulted in a $10.4 billion reduction in debt obligations and the issuance of 200 million new common shares, among other changes.
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