ResCap seeks nine-month extension of exclusive period to file plan

By Jim Witters

Wilmington, Del., Aug. 24 - Residential Capital, LLC is seeking a nine-month extension of its exclusive period for filing a Chapter 11 plan and 60 days after that date for seeking plan acceptances, according to documents filed Aug. 23 with the U.S. Bankruptcy Court for the Southern District of New York.

The company says it needs the additional time because of the complexity of the case and the company's focus on selling its assets, and because it cannot solicit votes on any plan until the completion of an investigation by a court-appointed examiner.

The examination is expected to take six months.

"The debtors also filed these cases with support for a pre-arranged plan that incorporates a settlement with Ally Financial Inc. The debtors continue to believe that such a plan is in the best interest of the debtors' estates," the company's filing says.

The examiner is reviewing "a number of significant transactions" with Ally and associated with the Ally settlement, "which likely will impact negotiations between and among the stakeholders in these cases," the filing states. "The majority of the debtors' time and resources have been devoted to completing the transition to operating under Chapter 11 and maximizing the value of their assets in order to consummate sales of a substantial portion of those assets that is expected to yield approximately $4 billion, and all while being inundated with contested matters, as well as hundreds of requests for information regarding the impact of these Chapter 11 cases," the motion states.

If the court approves the request, the exclusive period for filing a Chapter 11 plan would be extended to June 11, 2013, from Sept. 11. The exclusive period for garnering votes would be extended to Sept. 11, 2013, from Nov. 10.

A hearing on the request is scheduled for 10 a.m. ET on Sept. 11.

Residential Capital, a New York-based real estate finance company, filed for bankruptcy on May 14. The case number is 12-12020.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.