Residential Capital seeks exclusivity extension to continue plan talks

By Caroline Salls

Pittsburgh, Dec. 7 - Residential Capital, LLC is seeking an extension of its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend its exclusive filing period through Feb. 28 from Dec. 20 and the solicitation period through April 29 from Feb. 18.

ResCap said the exclusive periods should be extended to allow it to continue discussions with major stakeholders "on a broad spectrum of complex issues in an effort to forge a path to a consensual plan."

According to the motion, the company has provided key stakeholders with "an array of business and financial information," as well as with waterfall analyses that detail hypothetical returns to creditors.

ResCap said it also intends to request the appointment of a mediator to assist with the plan negotiation process "and ensure that those with a seat at the table are in the best position for disciplined, good faith discussions that are focused on the appropriate issues."

A hearing is scheduled for Dec. 20.

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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