Borrower Class Says $57M ResCap Set-Aside Isn't Enough

Law360, New York (August 08, 2013, 6:47 PM ET) -- A class of residential mortgage borrowers on Thursday attacked Residential Capital LLC’s Chapter 11 plan, saying it improperly aims to keep them from suing nondebtor entities and that the $57.6 million set aside for borrower claims isn’t enough.

In an objection to ResCap’s disclosure statement, which is scheduled to be considered by U.S. Bankruptcy Judge Martin Glenn on Aug. 21, the borrowers said they planned to challenge the plan itself when the time comes.

“Plaintiffs intend to object to such a plan because of improper third-party...
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