New York-based CIT, one of the nation's largest lenders to small and midsize businesses, has been devastated by the downturn in the credit markets and is attempting to restructure its operations to remain in business. CIT received $2.3 billion in federal bailout aid last fall, a $3 billion emergency loan in July from some of its largest bondholders, and bought back $1 billion in debt but still needs to reduce its debt burden to survive.

The company said late Thursday that its restructuring plan has been approved by its board and by the steering committee of its bondholders. Under terms of the deal, bondholders would exchange their current notes for a portion of five series of newly issued secured notes, with maturities ranging from four to eight years, and/or newly issued preferred shares.

The exchange offers will expire just before midnight Oct. 29. However, for the out-of-court debt restructuring to be successful, CIT said at least $5.7 billion worth of debt must be able to be wiped off of its balance sheet.

Therefore, CIT also is asking most bondholders and other holders of CIT debt to approve a prepackaged reorganization plan so the company has the option of filing for and quickly exiting Chapter 11 bankruptcy protection in the event the debt swap doesn't achieve its goals.

Ken Yood represents healthcare providers and healthcare companies, including specialty and general acute hospitals (including local district, nonprofit and for-profit facilities), home health agencies, pharmaceutical vendors, nursing facilities, and health information and management providers. Yood has expertise in Medicare and Medicaid reimbursement and certification, state licensing, and federal regulatory compliance.  He also counsels clients on physician referral law limitations, state and federal fraud and abuse issues, and state and federal false claims and program fraud matters.  Additionally, Yood helps clients operate and establish healthcare compliance programs, as well as internal and external investigations of healthcare facilities.

"Ken is an impressive healthcare attorney with an excellent reputation in the industry, who brings significant knowledge and expertise to the firm.  Ken's experience in healthcare regulatory and reimbursement matters dovetails well with our interdisciplinary healthcare practice.  Additionally, his transactional expertise will be of value to our private equity clients, as investment interest in this area heats up," said Guy Halgren, chairman of the firm.

Commented Yood, "With a growing healthcare group, a well-established position in California and a very strong healthcare labor practice, Sheppard Mullin is a perfect platform for my practice and clients. The firm has an entrepreneurial and collegial culture, which I value highly.  I look forward to working closely with partner Eric Klein in Century City, whole ads the firm's Healthcare team."

Yood received a J.D. from University of New York at Buffalo School of Law in 1989, a M.A. in Public Health from Harvard University in 1990 and a B.A. from Haverford College in 1986.  He has been recognized as a leading healthcare lawyer in Chambers USA: America's Leading lawyers for Business since 2005.

Also today, Louis Lehot joined Sheppard Mullin's Corporate practice group as a partner in the Silicon Valley office from Simpson Thacher & Bartlett in Palo Alto.  Earlier this year, Brian Weimer joined the Sheppard Mullin's Washington, D.C. office and Todd Bissett joined the firm's Shanghai office as partners in the Corporate practice group.  Weimer joined from Latham & Watkins in Washington, D.C. and Bissett joined from O'Melveny & Myers in Beijing.

Sheppard Mullin has 200 attorneys based in its Los Angeles offices (Downtown and Century City).  The firm's Corporate practice group includes more than 100 attorneys firm wide and the Healthcare team includes more than 20 attorneys.