ResCap Ch. 11 Looms Closer As Buyout Rumors Swirl

Law360, New York (March 16, 2012, 9:55 PM EDT) -- Ally Financial Inc. unit Residential Capital LLC is expected to seek Chapter 11 protection and a possible sale to Fortress Investment Group LLC in coming weeks, as it reels from steep losses in the faltering mortgage market, according to Friday news reports.

Fortress is reportedly the front-runner to buy ResCap in the expected bankruptcy proceedings, according to a report by the Wall Street Journal that cited people familiar with the matter. ResCap is seeking debtor-in-possession financing between $1 billion to $2 billion from Barclays PLC and...
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