Ally CEO Threatens To Withdraw $750M ResCap Creditor Deal
By Brian Mahoney
Law360, New York (February 5, 2013, 5:01 PM ET) -- The CEO of auto lender Ally Financial Inc. told investors Tuesday that the company was prepared to withdraw its $750 million pre-petition settlement with creditors of its bankrupt mortgage servicing arm Residential Capital LLC if they can’t “expeditiously” agree to the settlement terms.
In a fourth-quarter earnings call, Ally chief Michael Carpenter said the company was ready to “go the litigation route” if the agreement, designed to distance Ally from liability over the ResCap’s failure, falls through.
“Ally can withdraw the offer at anytime if creditors...