Wilmington Trust says it is not a CIT creditor

WILMINGTON, Del. — Wilmington Trust Corp. said Wednesday it has not loaned money to CIT Group Inc. and therefore is not a creditor in the commercial lender's bankruptcy.

Wilmington Trust issued a statement to clarify that while some news reports may have led investors to believe that it has loaned money to CIT, it has not. CIT's bankruptcy has no effect on Wilmington Trust's balance sheet or credit quality, the company said.

Instead, it serves as indenture trustee, transfer agent, registrar and paying agent in various equipment financing transactions.

CIT Group filed for Chapter 11 on Nov. 1 and hopes to make a quick exit after negotiating a deal with lenders to cut its debt by about $10 billion. It has scheduled a Dec. 8 court hearing to seek court approval for its bankruptcy exit plan.

Wilmington Trust is a financial services holding company that provides regional banking, wealth advisory and corporate client services.

Its shares rose 7 cents to $12.01 in after-hours trading after closing Wednesday at $11.94, down 11 cents from a day earlier.

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Nov 04, 2009 - 6:45 p.m. EDT

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