The legal tussle over the assets of Ally Financial's ailing Residential Capital (ResCap) unit took another twist yesterday when a U.S. Bankruptcy Court judge gave Fortress Investment Group's Nationstar Mortgage Holdings Inc. unit approval to be the opening bidder on ResCap's assets.
According to a Reuters report, this ruling rebuffs efforts by Warren Buffett's Berkshire Hathaway Inc. to be the ‘stalking horse,’ or initial bidder, on ResCap's assets. ResCap said that it has already reached a deal with Fortress Investment Group LLC after Ally filed a Chapter 11 bankruptcy for its failing ResCap unit.
Other potential buyers will be able to bid on ResCap's assets during the company's Chapter 11 bankruptcy process. A ResCap spokesperson welcomed the ruling, saying that the company was encouraged in the interest over its assets.