Reverse Mortgage disclosure statement hearing moved to March 21

By Sarah Lizee

Olympia, Wash., March 3 – Reverse Mortgage Investment Trust Inc.’s hearing on conditional approval of the disclosure statement for its Chapter 11 plan of liquidation was moved to March 21, according to a notice filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company said the plan is currently supported by the official committee of unsecured creditors, parent company BNGL Holdings and Nomura.

The plan provides for payment in full of allowed administrative claims, other secured claims, priority tax claims and other priority claims.

Holders of DIP secured claims will receive payment in full in cash. Under an agreement to receive less favorable treatment under a 9019 settlement, BNGL will receive half of the unencumbered asset proceeds, any remaining professional fee reserve amount after professional fees are paid, and half of any cash held by the wind-down debtors when the cases close, after payment in full of all operating expenses.

BNGL won’t receive anything on behalf of its secured note claims, except as otherwise provided in the 9019 settlement.

The holders of the Barclays warehouse repo facility claims, the Nomura claims, the TCB claims and the TIAA warehouse repo facility claims will receive payment in full in cash, delivery of the collateral securing any secured portion of the claims and payment of any interest required by bankruptcy code, or other treatment that renders the claims unimpaired.

To the extent the allowed amount of the above claims are not secured, the holders will receive their pro rata share of the general unsecured recovery and half of any cash held by the wind-down debtors when the cases are closed after operating expenses have been paid.

Holders of CS claims will receive payment in full in cash for the secured portion of the claim; delivery of the collateral, including risk retention bonds, securing any secured portion of the claims and payment of any interest required by bankruptcy code; or other treatment rendering the claims unimpaired.

Holders of Leadenhall claims and general unsecured claims will receive their pro rata share of the GUC recovery and half of any cash held by the wind-down debtors when the cases are closed and after payment in full of operating expenses.

Holders of intercompany claims and interests will receive no distribution.

RMIT equity interests will be canceled. Holders may receive their share of any remaining assets of RMIT in the event that all allowed claims have been satisfied in full.

RMF equity interests will be canceled with no distribution.

The Bloomfield, N.J.-based reverse mortgage issuer filed Chapter 11 bankruptcy on Nov. 30 under case number 22-11225.

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