ResCap, FGIC Reach Deal To Slash $5.5B Bankruptcy Claim

Law360, Los Angeles (June 10, 2013, 4:04 PM EDT) -- In a deal that will bring Residential Capital LLC closer to the end of its bankruptcy case in New York, the mortgage servicer announced a settlement Friday with Financial Guaranty Insurance Co. to reduce the bond insurer's claim from $5.5 billion to $596.5 million.

According to a court filing in U.S. Bankruptcy Court for the Southern District of New York, ResCap, which once was the fifth-largest mortgage-servicer in the United States, said the settlement was “subject to FGIC's reservation of its rights to assert certain additional...
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