FHFA Joins Opposition To ResCap Ch. 11 Plan

Law360, New York (October 23, 2013, 1:24 PM EDT) -- The Federal Housing Finance Agency objected Tuesday to Residential Capital LLC's Chapter 11 plan, arguing that it fails to provide the agency its claim of first priority to payment and unfairly gives it a smaller distribution percentage than the general unsecured creditors will receive.

The plan, originally filed in July, incorporated a $2.1 billion settlement with creditors and ResCap's former parent Ally Financial Inc., but FHFA argues that it does little to settle ResCap's debts to Fannie Mae and Freddie Mac, which purchased more than $6...
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