UPDATE 2-CIT Group bankruptcy plan wins wide support

* Wins much more support than required

* Judge may approve plan Dec. 8

* CIT hopes to emerge from bankruptcy this year

* Shares of CIT fall (Adds comment, bylines, updated share price)

By Jonathan Stempel and Walden Siew

NEW YORK, Nov 19 (Reuters) - CIT Group Inc CITGQ.PK has won overwhelming bondholder support for its reorganization plan, a critical step for the big finance company as it tries to emerge from bankruptcy by the end of the year.

The New York-based company said it has won "substantially in excess" of the minimum support needed under U.S. bankruptcy law from all classes of bondholders eligible to vote on its "prepackaged" Chapter 11 plan.

CIT on Nov. 1 filed one of the five largest bankruptcies in U.S. history, hoping to reduce debt by $10 billion.

Hundreds of thousands of small- and mid-sized businesses depend on CIT for financing, and company lawyers have said CIT has a "need for speed" in getting through bankruptcy because many customers could defect if the process drags on.

CIT said holders of 83 percent of its debt took part in the approval process for its reorganization plan, and holders of 92 percent of outstanding principal supported the plan.

U.S. Bankruptcy Judge Allan Gropper is scheduled at a Dec. 8 hearing to consider whether to approve the plan, which calls for unsecured debtholders to receive 70 cents on the dollar of new notes plus new common stock.

"There's broad, overwhelming support over all classes" of bondholders, said Jeffrey Werbalowsky, chief executive of Houlihan Lokey, the adviser to CIT bondholders. "We all are hopeful the plan will be confirmed on Dec. 8."

CIT said some noteholders who did not vote for the plan will have until Dec. 4 to accept notes and stock in exchange for their holdings, on the same terms as other noteholders who voted in favor of its Chapter 11 plan.

On Monday, CIT posted a $1.07 billion third-quarter loss, in part because it more than tripled the amount set aside for credit losses, compared with a year earlier.

The 101-year-old company ended September with $69.19 billion of assets and $64.07 billion of liabilities.

CIT shares fell 0.6 cents to 19.4 cents in afternoon trading on the Pink Sheets.

The case is In re CIT Group Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-16565. (Reporting by Jonathan Stempel, editing by Dave Zimmerman and John Wallace)