ResCap Wins Plan Extension To Keep Ch. 11 Control

Law360, New York (May 7, 2013, 2:53 PM EDT) -- Residential Capital LLC on Tuesday won another 30 days to file a Chapter 11 plan without the threat of a rival plan being offered, overcoming a challenge from junior secured noteholders who claim they stand to lose millions if the case continues to be delayed.

U.S. Bankruptcy Judge Martin Glenn's approval of the extension came at a critical point in ResCap's case. It is currently involved in mediation sessions aiming to resolve potential creditor claims against its former parent Ally Financial Inc. regarding its role in...
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