ResCap To Buffett: Go Away

Posted by Orb Staff on June 18, 2012 No Comments
Categories : Residential Mortgage

11801_warren_buffett ResCap To Buffett: Go Away The Residential Capital (ResCap) unit of Ally Financial is rebuffing efforts by Warren Buffett's Berkshire Hathaway to purchase its mortgage business assets and portfolio.

The Associated Press reports that ResCap has filed a motion in bankruptcy court that opposes Berkshire Hathaway's attempt to be the ‘stalking horse,’ or initial bidder, on its 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.

The bankruptcy court is expected to issue a ruling this week on the issue. Buffett's interest in ResCap, according to an earlier report by Bloomberg News, was to avoid a bankruptcy filing because Berkshire Hathaway has unsecured debt in ResCap.

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