Creditors Want ResCap Held To Ch. 11 Talks

Law360, New York (September 5, 2012, 10:12 PM EDT) -- Residential Capital LLC's unsecured creditors moved Wednesday to block the bankrupt real estate finance firm's bid for extra time to formulate its own restructuring plan, claiming ResCap is evading negotiations with its creditors to protect a pre-existing $750 million deal with its parent company.

The unsecured creditors committee called ResCap's Aug. 23 request for an extra nine months of exclusive restructuring time “excessive and unprecedented,” in an objection filed in New York bankruptcy court.

“The debtors entered bankruptcy with their hands tied, having prenegotiated the terms...
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