ResCap receives court approval for $1.93 billion in claims repayments

By Jim Witters

Wilmington, Del., June 13 - Residential Capital, LLC received court approval to satisfy more than $1.9 billion in secured claims, according to a June 13 filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the claims include: $380 million in letter-of-credit claims owed to Ally Financial, Inc., $747.13 million in senior secured credit facility claims owed to Ally and $800 million owed to the holders of ResCap's 9 5/8% junior secured guaranteed notes due 2015.

The company also received authority to repay interest owed on the Ally letter-of-credit and credit facility claims.

ResCap said repayment of the Ally claims will eliminate interest expenses and enhance distributions to unsecured creditors.

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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