ResCap Sues UMB, Wells Fargo Over Lien Value

Law360, New York (May 6, 2013, 5:40 PM EDT) -- Residential Capital LLC on Friday sued UMB Bank NA, Wells Fargo Bank NA and a group of junior secured noteholders holding $2 billion in claims against the estate over a dispute concerning the value of their liens securing certain bonds.

ResCap launched the adversary proceeding in an effort to obtain a ruling from a New York bankruptcy judge finding that the noteholders’ contention that certain ResCap bonds, for which UMB serves as the indenture trustee and Wells Fargo as the collateral agent, are oversecured is untrue....
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