Residential Capital misses April 17 interest payments on 2013 notes

By Caroline Salls

Pittsburgh, April 17 - Ally Financial Inc. subsidiary Residential Capital, LLC did not make the semiannual interest payment due April 17 on its $1.75 billion of 6½% notes due 2013, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Residential Capital said there are about $473 million of the notes currently outstanding. Interest on the notes is 8½%.

The missed payment will not constitute an event of default unless the payment failure continues for a period of 30 days, the 8-K said.

Residential Capital is a New York-based real estate finance company. Ally is a Detroit-based automotive lender.

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