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) -- Pacific Investment Management and Baupost, two of six lenders that bailed out

CIT Group

(CIT) - Get Free Report

in July, have quit a key steering committee of bondholders, according to reports.



report says Pimco and Baupost left the group a month ago, but as news leaked into the market Wednesday it apparently caused a CIT bond issue due Nov. 3 to fall 4 cents on the dollar to 67 cents. CIT's equity was down slightly in after-hours trading Wednesday to $1.14.

CIT has presented an

offer to bondholders

in an attempt to cut nearly $6 billion in debt before the end of the month. If not enough bondholders accept the offer, CIT will likely seek protection from its creditors. CIT already has prepared a prepackaged bankruptcy filing, which it unveiled last week at the same time it made the offer to bondholders.

CIT has been unable to access debt markets after the Federal Deposit Insurance Corp. declined to guarantee its debt, as it did for larger lenders like


(C) - Get Free Report


Bank of America

(BAC) - Get Free Report


General Electric

(GE) - Get Free Report


-- Written by Dan Freed in New York.