In the Marketplace

Phillips Lytle LLP of Buffalo, NY, has named Martin Schwartz as special counsel in the firm's New York office, where he will join the commercial practice group. Schwartz will focus on bankruptcy, equipment finance litigation, general commercial litigation, equipment leasing and secured lending transactions, including syndications, tax-exempt financing and vendor equipment/software financing. Previously, he was general counsel at Siemens Corp.

GE Aviation of the United States and AVIC Systems of China have agreed to form a new joint venture company to develop and market integrated avionics systems for commercial aircraft customers. The announcement was made as part of “GE's Clean Technology Week in China” activities. The new avionics company, to be headquartered in China, will offer fully integrated, open architecture avionics and services for future commercial aircraft programs. With definitive documentation already in place, the goal is to launch the new joint venture company by mid-2010, subject to receiving all required regulatory approvals. The initial focus of the venture is to jointly bid competitive solutions to compete for the COMAC C919 narrow-body aircraft program.

People's United Financial, Inc., the holding company for People's United Bank, the largest bank headquartered in New England, has announced a definitive agreement to acquire Financial Federal Corporation in a stock and cash transaction valued at approximately $738 million. Financial Federal is a financial services company providing collateralized lending, financing and leasing services nationwide to small- and medium-sized businesses in the general construction, road and infrastructure construction and repair, road transportation and refuse industries.

Although completion of the transaction is subject to customary closing conditions, including the approval of the shareholders of Financial Federal, People's United expects the transaction to be significantly accretive to operating earnings in 2010 and to have an IRR greater than 20%. People's United identified Financial Federal as a valuable complement to its existing business lines, particularly its equipment financing subsidiary, People's Capital and Leasing. Under the terms of the definitive agreement, which has been approved by both companies' boards of directors, at closing Financial Federal Corporation shareholders will receive $11.27 in cash and one share of People's United common stock. The Administrative Office of the U.S. Courts has released its statistics for the 12-month period ending Sept. 30, 2009, showing that bankruptcy cases filed in federal courts for fiscal year 2009 totaled 1,402,816, up 34.5 % over the 1,042,993 filings reported for the 12-month period ending Sept. 30, 2008. Significantly, business filings totaled 58,721, up 52% from the 38,651 business filings in the 12-month period ending Sept. 30, 2008. Non-business filings totaled 1,344,095, up 34% from the 1,004,342 non-business bankruptcy filings in September 2008.

Arctic Cat Inc. of Minneapolis has entered into an agreement with GE Capital, Commercial Distribution Finance for it to become the exclusive provider of floorplan financing for Arctic Cat's U.S. dealers. The new multi-year financing program will replace Arctic Cat's current financing agreement with Textron Financial Corporation, which had previously announced its intent to exit the dealer floorplan business. The new financing program was expected to have begun Dec. 1, 2009.

CIT Group Inc. has announced that the United States Bankruptcy Court for the Southern District of New York has confirmed the company's prepackaged plan of reorganization. The confirmed Plan reduces CIT's total debt by approximately $10.5 billion while deferring debt maturities for three years, and also enhances capital ratios to levels that exceed regulatory requirements. With its strengthened financial position, CIT will now focus on its business restructuring and the execution of a smooth leadership transition. CIT continues to make progress on the reconstitution of its Board of Directors. Ultimately, CIT's new Board will consist of 13 Directors, including seven new independent Directors identified by CIT's debtholders, five continuing directors and a new Chief Executive Officer to replace outgoing CEO, Jeffrey M. Peek.

CIT has indicated that it anticipates a prompt emergence from bankruptcy and upon its discharge from Chapter 11, CIT will be committing $500 million to support its Small Business Lending group to fund government guaranteed loans in the Small Business Administration 7a and 504 lending programs, as well as $1 billion in funding for its Vendor Financing operating segment. These commitments are in addition to the previously announced $1 billion in funding for its Trade Finance operating segment, which provides factoring services for mid-sized businesses. CIT also expects to generate new loans across its other lending and leasing platforms in 2010.

Under the terms of the bankruptcy Plan, CIT's existing common and preferred stock, along with all non-reinstated debt, will be cancelled effective upon consummation of the Plan, and distributions of new debt and equity securities will occur as soon as practicable thereafter. The Company's new Common Stock will be listed on the New York Stock Exchange under the ticker symbol “CIT” and the Company expects the stock will begin trading on the exchange upon the Plan's consummation. In aggregate, CIT will issue 200 million shares of new Common Stock to eligible debt holders in exchange for their claims against the debtors. Payments on reinstated debt and other unimpaired claims that were stayed during the Chapter 11 cases will be made as soon as practicable after emergence. The new debt securities issued under the Plan will begin to accrue interest on the emergence date.

Phillips Lytle LLP of Buffalo, NY, has named Martin Schwartz as special counsel in the firm's New York office, where he will join the commercial practice group. Schwartz will focus on bankruptcy, equipment finance litigation, general commercial litigation, equipment leasing and secured lending transactions, including syndications, tax-exempt financing and vendor equipment/software financing. Previously, he was general counsel at Siemens Corp.

GE Aviation of the United States and AVIC Systems of China have agreed to form a new joint venture company to develop and market integrated avionics systems for commercial aircraft customers. The announcement was made as part of “GE's Clean Technology Week in China” activities. The new avionics company, to be headquartered in China, will offer fully integrated, open architecture avionics and services for future commercial aircraft programs. With definitive documentation already in place, the goal is to launch the new joint venture company by mid-2010, subject to receiving all required regulatory approvals. The initial focus of the venture is to jointly bid competitive solutions to compete for the COMAC C919 narrow-body aircraft program.

People's United Financial, Inc., the holding company for People's United Bank, the largest bank headquartered in New England, has announced a definitive agreement to acquire Financial Federal Corporation in a stock and cash transaction valued at approximately $738 million. Financial Federal is a financial services company providing collateralized lending, financing and leasing services nationwide to small- and medium-sized businesses in the general construction, road and infrastructure construction and repair, road transportation and refuse industries.

Although completion of the transaction is subject to customary closing conditions, including the approval of the shareholders of Financial Federal, People's United expects the transaction to be significantly accretive to operating earnings in 2010 and to have an IRR greater than 20%. People's United identified Financial Federal as a valuable complement to its existing business lines, particularly its equipment financing subsidiary, People's Capital and Leasing. Under the terms of the definitive agreement, which has been approved by both companies' boards of directors, at closing Financial Federal Corporation shareholders will receive $11.27 in cash and one share of People's United common stock. The Administrative Office of the U.S. Courts has released its statistics for the 12-month period ending Sept. 30, 2009, showing that bankruptcy cases filed in federal courts for fiscal year 2009 totaled 1,402,816, up 34.5 % over the 1,042,993 filings reported for the 12-month period ending Sept. 30, 2008. Significantly, business filings totaled 58,721, up 52% from the 38,651 business filings in the 12-month period ending Sept. 30, 2008. Non-business filings totaled 1,344,095, up 34% from the 1,004,342 non-business bankruptcy filings in September 2008.

Arctic Cat Inc. of Minneapolis has entered into an agreement with GE Capital, Commercial Distribution Finance for it to become the exclusive provider of floorplan financing for Arctic Cat's U.S. dealers. The new multi-year financing program will replace Arctic Cat's current financing agreement with Textron Financial Corporation, which had previously announced its intent to exit the dealer floorplan business. The new financing program was expected to have begun Dec. 1, 2009.