CIT Group seeks judge's OK on bankruptcy exit plan

* CIT seeks court approval for prepackaged Chapter 11 plan

* Approval would pave way for CIT to exit bankruptcy

* CIT has enough support from debtholders for plan

By Emily Chasan

NEW YORK, Dec 8 (Reuters) - U.S. small business lender CIT
Group Inc CITGQ.PK headed to court on Tuesday to ask a New
York bankruptcy judge for approval of its prepackaged
reorganization plan.

The company, which filed for bankruptcy just weeks ago on
Nov. 1, is asking Judge Allan Gropper to approve the plan,
which would pave the way for the company to exit bankruptcy
protection.

"We think our plan has, in fact, satisfied the conditions
for approval," Gregg Galardi, an attorney at Skadden Arps Slate
Meagher & Flom representing CIT, said at the beginning of a
court hearing on Tuesday.

CIT, which filed one of the five largest bankruptcies in
U.S. history after a debt exchange offer failed, is hoping to
reduce its debt by $10 billion under the reorganization plan.

The company has said it has won support from bondholders
"substantially in excess" of the minimum amount required under
U.S. bankruptcy law.

Hundreds of thousands of small- and mid-sized businesses
depend on CIT for financing, and company lawyers have said CIT
must try to get through bankruptcy quickly to avoid customer
defections.

Under the proposed reorganization plan, unsecured
debtholders are to receive 70 cents on the dollar of new notes
plus new common stock.

The case is In re: CIT Group Inc, U.S. Bankruptcy Court,
Southern District of New York, No. 09-16565.
(Reporting by Emily Chasan, editing by Matthew Lewis)