ResCap Gets A Leg Up In Bondholder Interest Fight

Law360, New York (August 30, 2013, 3:48 PM EDT) -- Residential Capital LLC on Thursday moved ahead in its battle against a group of junior secured noteholders over the value of certain liens and interest on their debt after a judge threw out several counterclaims the JSNs lobbed at the fallen mortgage servicer.

In an adversary proceeding under ResCap’s Chapter 11 case, the bondholders have claimed they are oversecured and entitled to $354 million in accrued, unpaid interest and default interest on their debt. That amount, combined with the $1.4 billion principal balance they say they...
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