ResCap Would Have Won On $3B Ally Claims, Examiner Says
By David McAfee
Law360, Los Angeles (June 27, 2013, 8:46 PM ET) -- Bankrupt mortgage company Residential Capital LLC would have likely prevailed on more than $3.1 billion in legal claims against its former parent Ally Financial Inc. if it had pursued the claims in court instead of settling them, according to an independent examiner’s report unsealed Thursday.
The report was unsealed just a day after ResCap and Ally locked in approval of their $2.1 billion settlement with creditors who threatened to take Ally to court over ResCap’s bankruptcy, securing a significant step toward a Chapter 11 plan confirmation. That...