by Calculated Risk on 7/16/2009 02:31:00 PM

From Bloomberg: CIT Bondholders Said to Consider Debt Swap as Bankruptcy Looms

CIT Group Inc. bondholders are holding calls today to discuss whether to swap some of their claims for equity to reduce the 101-year-old lender’s indebtedness ...

[PIMCO], CIT’s largest bondholder based on regulatory filings, plans to host a call ... [however] there may not be time to complete a debt exchange before CIT goes bankrupt.

Looks like PIMCO expected a bailout.