CIT Group Inc., the 101-year-old commercial lender, said that it would do its best to restructure its debts, but would likely file bankruptcy petition in case of failure of its exchange offer. It has been seeking a cut of at least $5.7 billion of debt to put its economic health on track and to avoid collapse.

The commercial bank said that it hopes debt reduction by at least $5.7 billion to avoid any fall out. CIT urged bondholders and other creditors to support the company in the present tough times, and to approve a prepackaged plan of reorganization in case of bankruptcy petition.

CIT Chairman and Chief Executive Jeffrey Peek said: "We believe this plan maximizes franchise value and can be executed quickly and effectively through a series of voluntary debt-exchange offers or an expedited in-court restructuring process."

The legendary financial institution got bailout money from the federal government, besides financial assistance in terms of low interest loans from various creditors to meet its financial requirements. Speculations are also rife that CIT may replace its board of directors, thereby bringing new faces in the management.