Berkshire asks court to unseal Residential Capital examiner's report

By Caroline Salls

Pittsburgh, May 23 - Residential Capital, LLC junior secured bondholder Berkshire Hathaway Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to unseal the report of court-appointed examiner Arthur J. Gonzalez, according to a Wednesday court filing.

As previously reported, the examiner's report, which was filed under seal on May 13, can remain sealed until July 3 in connection with ResCap's filing of a motion for approval of a plan of reorganization support agreement (PSA) with Ally Financial Inc. and other key stakeholders.

"The PSA may indeed represent a fair and good faith settlement between the debtors and Ally and be in the best interest of creditors," Berkshire Hathaway said in its motion.

"But without the benefit of the independent and comprehensive assessment of the examiner's report, creditors will be ill-equipped to evaluate the fairness of the PSA and any plan of reorganization that is based upon it."

"Sealing the examiner's report deprives the creditors of the very benefit of appointing an examiner: an objective and independent assessment of the prepetition dealings between the debtors and Ally that lie at the heart of these bankruptcy cases."

Berkshire Hathaway asked the court to grant public access to the report as soon as possible.

A hearing is scheduled for 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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