ResCap Bondholders Lose Bid To Dismiss Company's Attys

Law360, New York (July 30, 2013, 3:13 PM EDT) -- Junior secured noteholders in Residential Capital LLC’s bankruptcy on Tuesday lost their bid to disqualify ResCap attorneys in a dispute over intercompany claims after a judge was unpersuaded by their argument that the lawyers have a conflict of interest.

U.S. Bankruptcy Judge Martin Glenn rejected a motion from the ad hoc group of bondholders, who claim to hold $2.2 billion in ResCap’s debt, to issue an order directing counsel for each of the bankrupt ResCap entities, the creditors’ committee and the chief restructuring officer to remain...
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