ResCap, lenders agree to continued cash collateral use until April 18

By Jim Witters

Wilmington, Del., March 18 - Residential Capital, LLC, Ally Financial Inc. and holders of ResCap's junior secured notes agreed on the continued use of cash collateral by the debtors through April 18 while they negotiate an expense allocation methodology, according to a March 18 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The extended final cash collateral order will automatically terminate without further notice or order of the court on the effective date of a Chapter 11 plan for any debtor, on April 18 or upon written notice by Ally.

As previously reported, Ally provided ResCap $220 million of debtor-in-possession financing.

In late 2012, ResCap's asset sales drew winning bids totaling $4.5 billion.

On Feb. 5, a $1.5 billion sale closed, and the Ally DIP facility was repaid in full, according to the court filing.

The two other asset sales also closed this year.

Residential Capital, a New York-based mortgage originator and servicer, filed for bankruptcy on May 14, 2012. Its 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.