Ally Financial ‘Actively Considering’ Bankruptcy For ResCap

Posted by Orb Staff on May 01, 2012 No Comments
Categories : Residential Mortgage

11444_delinquencies Ally Financial 'Actively Considering' Bankruptcy For ResCap Ally Financial Inc. is ‘actively considering’ declaring bankruptcy for its Residential Capital LLC mortgage unit, more commonly known as ResCap.

The Detroit News reports that Ally, which is 74% owned by the U.S. Department of the Treasury, could lose $1.25 billion if it puts ResCap into bankruptcy. ResCap failed to make its April 17 semi-annual interest payment of $20 million on $473 million in unsecured debt that will come due next year. This could lead to default by May 17.

Ally has been unsuccessful in trying to locate a buyer for ResCap, which makes up 10% of Ally's total business.

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