$9B Claim To End ResCap-Investors RMBS Fight

Law360, New York (June 12, 2012, 7:38 PM EDT) -- Residential Capital LLC on Monday reached a settlement in its New York bankruptcy with holders of residential mortgage-backed securities, seeking court approval to grant to certain securitization trusts an $8.7 billion allowed claim against two debtor entities.

The bankrupt unit of Ally Financial Inc. submitted the settlement to U.S. Bankruptcy Judge Martin Glenn, who is overseeing the case. The allowed claim would be granted against debtors Residential Funding Co. LLC and GMAC Mortgage LLC.

“The RMBS trust settlement resolves, in exchange for the allowed claim, alleged...
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