Jeffrey Peak plans to resign as CIT Group Inc.'s (CIT) chairman and chief executive at the end of this year as the beleaguered commercial lender tries to stay out of bankruptcy.

Shares slid 19% premarket to 84 cents.

Peak didn't say why he would be departing beyond noting the company's ongoing debt-restrucuring plan, which seeks to get bondholders with about $31 billion in debt to cut that by at least $5.7 billion and extend debt maturities so it can avoid heading to bankruptcy court to reorganize. The offer apparently is attracting scant interest.

"Now is the appropriate time to focus on a transition of leadership," he said.

The increased potential for bankruptcy is being closely watched because it could cause ripple effects throughout the economy and financial sector. CIT has an estimated $75 billion in assets and provides critical short-term financing to about 1 million small companies.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;