Residential Capital gets OK to use cash collateral through June 12

By Lisa Kerner

Charlotte, N.C., May 14 - Residential Capital, LLC was granted a sixth stipulation and order amending its debtor-in-possession and cash collateral order, according to a May 14 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The order allows the continued use of the up to $220 million of cash collateral from Ally Financial Inc. and holders of the company's 9 5/8% junior secured notes due 2015 through June 12.

According to the filing, the parties to consensually amend the DIP and cash collateral order pursuant to the terms of the stipulation so that the court can hear the debtors' cash collateral motion at an evidentiary hearing on June 12.

Residential Capital, a New York-based mortgage originator and servicer, filed for bankruptcy on May 14, 2012. Its case number is 12-12020.

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