General Motors Corp.'s Residential Capital Corp. said Friday that it had repaid all $11 billion of the debt it owed its immediate parent, General Motors Acceptance Corp.
The repayment, which began last June after ResCap issued its first bonds, was completed more than six months ahead of schedule, the company said.
General Motors reorganized its residential mortgage business last year by putting the GMAC Mortgage Corp. and GMAC Residential Funding Corp. units under ResCap. Part of the motivation was GM's desire to obtain investment-grade ratings for the mortgage business when the rest of the Detroit automaker's credit ratings were falling to junk status.
Last month General Motors announced a deal to sell a 51% stake in GMAC, its finance arm, to an investment consortium led by Cerberus Capital Management LP.
