Consumer banking

Ally Financial Said Seeking Buyer for ResCap Unit

Published February 08, 2012, 11:46 a.m. EST

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Updated February 08, 2012, 4:41 p.m. EST

1 Min Read

Consumer banking

ResCap Bondholders Organize, Fearing a Bankruptcy Filing

Investors holding at least $800 million of secured bonds in Residential Capital, which does business under the brand name GMAC Mortgage, have organized in the event the firm's parent, Ally Financial, throws the company into bankruptcy.

By Paul Muolo

January 9
Consumer banking

Ally Financial Considering Bankruptcy for ResCap Unit

Ally Financial is actively considering putting its ailing Residential Capital mortgage-lending unit into bankruptcy, said people familiar with the situation.

November 8

Ally Financial Inc.'s Residential Capital LLC mortgage unit is in talks with potential buyers and is considering using a pre-packaged bankruptcy to facilitate a sale, Bloomberg News reported Wednesday on its website, citing people with knowledge of the matter.

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The unit, known as ResCap, along with its financial advisors have contacted buyout firms including Fortress Investment Group LLC, Cerberus Capital Management LP, Centerbridge Capital Partners LLC and Leucadia National Corp. on the matter. A plan for ResCap is intended to be in place by the end of March, in advance of financing and liquidity deadlines, sources told Bloomberg.

Representatives of Ally, Cerberus and Leucadia declined comment to Bloomberg. Spokesmen for Centerbridge and Fortress didn't immediately respond to requests for comment.

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Consumer banking

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