Collateral Clash Will Be Heart Of ResCap Interest Trial

Law360, New York (October 11, 2013, 8:04 PM ET) -- A group of Residential Capital LLC junior secured noteholders are gearing up for trial Tuesday as they look to lock in hundreds of millions of dollars they say the bankrupt mortgage broker owes them after miscalculating collateral during the early days of the bankruptcy.

As they head to trial, the noteholders claim they are entitled to substantial post-petition interest on their debt on top of the recovery ResCap has set aside for them under its proposed Chapter 11 plan based on the argument that they are...
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