Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

ResCap Examiner Says He Will File Report on Ally Friday

May 8 (Bloomberg) -- A report on Residential Capital LLC’s pre-bankruptcy deals with parent Ally Financial Inc. will be filed with the court on May 10, lawyers for the retired judge leading the probe said in a filing.

The report will focus on Ally’s proposal to pay $750 million in exchange for avoiding lawsuits related to its actions before ResCap filed bankruptcy, a settlement opposed by creditors as too small.

Former U.S. Bankruptcy Judge Arthur J. Gonzalez will file his report on the day that ResCap’s official creditor committee says is the last chance that a “global settlement” could be reached to avoid court fights over the company’s reorganization.

The committee, with ResCap and Ally, is in mediation overseen by a judge who’s a former colleague of Gonzalez on the U.S. Bankruptcy Court in Manhattan. Those talks may lead to a deal by May 10, Kenneth H. Eckstein, an attorney for the committee said in court yesterday.

New York-based ResCap filed for bankruptcy last year, partly to help it resolve lawsuits brought by investors that purchased mortgage bonds backed by $226 billion worth of home loans. The lawsuits claimed the bonds lost value because many of the loans were bad.

The case is In re Residential Capital LLC, 12-bk-12020, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.