ResCap Gets $2.1B From Ally To Settle Creditor Claims

Law360, Chicago (May 23, 2013, 1:48 PM EDT) -- Ally Financial Inc. will pay $2.1 billion to win peace with creditors of its former mortgage subsidiary, bankrupt Residential Capital LLC, nearly triple the auto lender’s original settlement offer, according to documents filed Thursday in New York bankruptcy court.

The settlement was announced last week, averting the release of an examiner’s report on Ally’s role in ResCap’s downfall, but the terms were undisclosed at the time. The deal lies at the heart of a “soon-to-be-filed” reorganization plan, ResCap said, and is memorialized in a plan support...
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