This excerpt taken from the CIT 8-K filed Oct 19, 2009.
In connection with a possible restructuring in Bankruptcy Court, CITs management analyzed the ability of CIT to meet its obligations upon consummation of such restructuring with sufficient liquidity and capital resources to conduct its businesses. CITs management also has developed CITs business plan and prepared certain projections of CITs operating profit, cash flow and certain other items for the fiscal years 2010 through 2014 (the Projection Period). Such projections, summarized below, are based upon assumptions and have been adjusted to reflect the terms of a possible restructuring in Bankruptcy Court, including the Plan of Reorganization, certain subsequent events and additional assumptions, including those set forth below (as adjusted, the Projections).
CIT DOES NOT, AS A MATTER OF COURSE, PUBLISH ITS BUSINESS PLANS, BUDGETS OR STRATEGIES OR MAKE EXTERNAL PROJECTIONS OR FORECASTS OF ITS ANTICIPATED FINANCIAL POSITIONS OR RESULTS OF OPERATIONS. ACCORDINGLY, CIT DOES NOT ANTICIPATE THAT IT WILL, AND DISCLAIMS ANY OBLIGATION TO, FURNISH UPDATED BUSINESS PLANS, BUDGETS OR PROJECTIONS TO CREDITORS PRIOR TO THE EFFECTIVE DATE OF ANY PLAN OF REORGANIZATION OR TO INCLUDE SUCH INFORMATION IN DOCUMENTS REQUIRED TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) OR OTHERWISE MAKE SUCH INFORMATION PUBLICLY AVAILABLE.
The following Projections were not prepared with a view toward compliance with published rules of the SEC or the American Institute of Certified Public Accountants regarding projections. The prospective financial information included in this offering document has been prepared by, and is the responsibility of, the Companys management. The Company and its management believe that the following Projections have been prepared on a reasonable basis, reflecting managements best estimates and judgments, and represent, to the best of managements knowledge and opinion, the Companys expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
PricewaterhouseCoopers LLP has neither examined, compiled nor performed any procedures with respect to the prospective financial information contained in this appendix and, accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance on such information or its achievability. PricewaterhouseCoopers LLP assumes no responsibility for and denies any association with the prospective financial information.
The PricewaterhouseCoopers LLP report on the consolidated financial statements of the Company as of December 31, 2008 incorporated by reference in this offering document refers exclusively to the Companys historical financial information as of December 31, 2008. PricewaterhouseCoopers LLP report does not cover any other information in this offering and should not be read to do so.
The Projections should be read in conjunction with the assumptions, qualifications and explanations set forth herein and the Summary, Risk Factors, and Selected Historical Consolidated Financial Data, included in this Offering Memorandum and Disclosure Statement.