Subprime lender ResMae Mortgage Corp. won approval for its plan to exit bankruptcy in the hands of Chicago hedge fund Citadel Investment Group LLC.
Judge Kevin J. Carey approved ResMae's Chapter 11 plan at a hearing Tuesday in the U.S. Bankruptcy Court in Wilmington, Del.
The company said it expects to officially emerge from Chapter 11 by June 15. Citadel bought the Brea, Calif., company for $22.4 million at a bankruptcy court auction. Citadel, which topped Credit Suisse Group's bid for ResMae at the auction, has also bought about $160 million in loans ResMae made after filing for bankruptcy.
