Bankruptcy Judge Backs Buffett In ResCap Ruling

Posted by Orb Staff on June 19, 2012 No Comments
Categories : Residential Mortgage

11812_judicial2 Bankruptcy Judge Backs Buffett In ResCap Ruling In a court victory for Warren Buffett's Berkshire Hathaway Inc., a U.S. bankruptcy judge has announced that he will name independent examiner to review the bankruptcy of filing Ally Financial's Residential Capital (ResCap) unit.

According to a Reuters report, Judge Martin Glenn told a court hearing that ‘given the facts and circumstances of this case, the court concludes that appointment of an examiner is required and appropriate.’

The court ruling supports Berkshire Hathaway's attempt to be the ‘stalking horse,’ or initial bidder, on ResCap's assets. ResCap says that it has already reached a deal with Fortress Investment Group LLC after Ally filed a Chapter 11 bankruptcy for its failing ResCap unit.

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