ResCap Settlement Allowing $1.2B In FHFA Claims OK'd

Law360, Los Angeles (November 27, 2013, 8:27 PM EST) -- A New York bankruptcy judge on Tuesday granted Residential Capital LLC’s motion for approval of a settlement agreement between its debtors, former parent Ally Financial Inc. and unsecured creditors, which allows for $1.2 billion in FHFA claims against Residential Funding Company LLC.

ResCap debtors moved for approval of their entry into the settlement with the official committee of unsecured debtors and Ally and its affiliates on Nov. 18, saying the deal is ancillary to a separate settlement between Ally and the Federal Housing Finance Agency that...
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