CIT eyes debt exchange or prepack bankruptcy-sources

NEW YORK, Sept 30 (Reuters) - CIT Group Inc is planning to offer its unsecured debt holders two options: either to exchange their debt voluntarily, or agree to a prepackaged bankruptcy, according to people close to the matter.

The debt exchange would allow bondholders to swap their securities for new debt, or equity. CIT has about $32 billion of unsecured debt on its balance sheet, and is hoping to reduce its indebtedness and to put off repaying maturing obligations.

Few financial companies have survived bankruptcy, but CIT believes its customers will continue to borrow from it even if it is reorganizing in bankruptcy court, the sources said. The sources refused to be identified, because the plans are not yet public.

(Reporting by Dan Wilchins and Paritosh Bansal, editing by Leslie Gevirtz)