ResCap trust to distribute $200 million to unitholders on March 31

By Caroline Salls

Pittsburgh, March 6 – The ResCap Liquidating Trust said its board of trustees declared a cash distribution of $2.00 per unit to holders of units of beneficial interest in the trust, totaling $200 million, to be paid on March 31.

According to a news release, the payment, which includes a distribution made on account of units in a disputed claims reserve, will go to unitholders of record as of the close of business on March 16.

Of the $2.00 distribution per unit, the trust said $0.34 will consist of income from litigation recoveries and similar items that it believes is U.S. source income subject to federal withholding tax to the extent allocable to unitholders that are not U.S persons.

Because it does not have the necessary information concerning the identity and tax status of its unitholders, the trust said it will distribute the gross amount of the distribution to brokers and expects that the required tax withholding will be effected by U.S. brokers.

As a result, unitholders subject to withholding are expected to receive a distribution net of the required withholding.

Residential Capital, a New York-based mortgage originator and servicer, emerged from bankruptcy on Dec. 17, 2013.

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