GMAC LLC announced Friday that it intends to exchange unit Residential Capital's bonds for most or all of ResCap's nonvoting stake in IB Finance Holding Co., the parent of GMAC Bank's parent company.
The move comes as GMAC and ResCap continue to complete a $38 billion exchange offer that GMAC needs as part of its effort to gain bank holding company status.
The IB Finance swap, if completed, would include at least 25% of ResCap's outstanding debt. ResCap would immediately cancel the old notes given to it by GMAC and swap them for the IB Finance stake.
GMAC warned last week that it will drop its effort to become a bank holding company if more bondholders don't agree to its exchange offer, which has been extended four times.
GMAC estimates that it needs nearly 75% acceptance for it to become a bank holding firm and gain access to the Treasury Department's $700 billion injection effort and other avenues of cheaper capital in an effort to stabilize its teetering state.
