by Calculated Risk on 7/17/2009 03:02:00 PM

From CNBC: CIT Talks Now Include Possible Financing in Bankruptcy

CIT Group's talks with many lenders have transitioned primarily to how the company would receive financing once it files for bankruptcy, CNBC has learned.

Although talks are continuing on financing outside of bankruptcy, sources said that discussions are also focused on a so-called debtor-in-possession loan, in which CIT would receive money after a bankruptcy filing.

For that reason, a bankruptcy filing is unlikely on Friday, although the situation remains fluid.

A bad sign ...