Reuters: Bankruptcy News: AIG, Allstate, others on ResCap creditor committee

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AIG, Allstate, others on ResCap creditor committee May 17th 2012, 02:41 Wed May 16, 2012 10:41pm EDT * AIG, Allstate, Bank of NY Mellon, others on committee * Committee to negotiate for unsecured creditors * Ally's ResCap mortgage unit filed Chapter 11 on May 14 May 16 (Reuters) - Nine creditors of Residential Capital LLC, including the insurers American International Group Inc and Allstate Corp, were selected to join the unsecured creditors committee for the mortgage lender's bankruptcy. The members were identified in a Wednesday night filing with the U.S. bankruptcy court in Manhattan, two days after ResCap, a unit of Ally Financial Inc, filed for Chapter 11 protection. Other committee members include Bank of New York Mellon Corp , Deutsche Bank AG, bond insurers Financial Guaranty Insurance Co and MBIA Inc, the Wilmington Trust unit of M&T Bank Corp and US Bancorp. Also on the committee is a representative for plaintiffs in separate mortgage lending litigation. The members were appointed by the Office of the U.S. Trustee, a Justice Department division that oversees bankruptcies. They will negotiate on behalf of other ResCap unsecured creditors, and can examine a debtor's conduct and operations. ResCap filed for bankruptcy on May 14 after years of losses on subprime and other home loans it made. It had once been one of the 10 largest U.S. mortgage lenders. The U.S. Treasury Department owns nearly 74 percent of Ally, which did not seek court protection. The case is In re: Residential Capital LLC, U.S. Bankruptcy Court, Southern District of New York, No. 12-12020. Link this Share this Digg this Email Reprints

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