Berkshire Hathaway Fights ResCap's Bid For $1B Ally Payout

Law360, Los Angeles (June 5, 2013, 10:28 PM EDT) -- Warren Buffett’s Berkshire Hathaway Inc. on Wednesday objected to Residential Capital LLC and its debtors' request for the court to approve a more than $1.1 billion payout to Ally Financial Inc., saying the payment "puts the cart before the horse."

The objection by one of ResCap’s largest bondholders comes two weeks after Ally agreed to pay $2.1 billion to win peace with creditors of its former mortgage subsidiary, bankrupt ResCap — nearly triple the auto lender’s original settlement offer. ResCap debtors on Monday asked the court...
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