ResCap Slams Bondholders' Bid For Higher Payout

Law360, New York (October 15, 2013, 3:12 PM EDT) -- Residential Capital LLC and its unsecured creditors on Tuesday kicked off their bid to keep an ad hoc group of junior secured noteholders from obtaining post-petition interest on the debt they hold by arguing that the noteholders are more than $500 million undersecured.

Attorneys for the fallen mortgage servicer and its official committee of unsecured creditors presented their opening arguments to the bankruptcy judge overseeing ResCap’s Chapter 11 case in a trial over the scope of the JSNs’ liens on their assets and the value of...
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