ResCap Gets Court Approval To Pay $1.1B Ally Debt

Law360, New York (June 12, 2013, 4:13 PM EDT) -- Residential Capital LLC on Wednesday secured a New York bankruptcy judge’s approval to make an early $1.1 billion debt payment to former parent Ally Financial Inc., despite an objection from bondholder Berkshire Hathaway Inc., saying the financial benefit to the estate outweighs any potential risks.

ResCap argued before U.S. Bankruptcy Judge Martin Glenn at a court hearing that allowing it to make the payment now to Ally, as well as an $800 million payment to junior secured bondholders, will save it $3 million a month in...
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