On Thursday US time, CIT Group announced a comprehensive restructuring plan worked out with bondholders. The goal of the board is for CIT to emerge as a well-funded bank holding company, though one, in effect, owned by investors in its debt.The plan provides for an exchange offer for certain unsecured notes or alternatively a pre-packaged plan of reorganisation under a Chapter 11 bankruptcy filing. CIT says bondholders with approximately US$10 billion of outstanding indebtedness have already agreed to both options.The exchange offer seeks a minimum debt reduction of US$5.7 billion, specifically in relation to debt maturing between now and the end of 2012. Bondholders will be offered a pro-rata portion of five series of new secured notes with maturities ranging from four to eight years and/or preferred voting stock. The exchange offer expires on October 29. In Australia, the local finance company arm of CIT has (or had) around $900 million in assets. Of this, $300 million is funded through a medium-term note program in the domestic market.Local management did not want to be drawn on any aspect of the proposal on Friday but did confirm it had continued to fund normal client demand, mainly for equipment loans, as the viability of the business was under scrutiny over recent months.