CIT debt offer by obscure fund raises questions

NEW YORK (Reuters) – An obscure hedge fund said it offered to buy $1 billion in debt from CIT Group Inc (CIT.N) but declined to identify its source of capital. CIT would not comment on whether it was seriously considering the offer.

The fund, logi Energy, said it was interested in $1 billion of CIT’s middle market lenders debt portfolio.

…Logi is currently raising capital for a Peak Oil Value Fund to target investments based on expectations that global oil production has neared a top.

Peak Oil, a controversial theory in the energy sector, holds that oil prices will surge as output peaks and exporting nations curb shipments even as demand continues to climb.

Critics say the theory ignores the technological advances that have opened up vast new areas to exploration, such as deepwater drilling, oil sands processing and shale drilling.

Reuters