Reuters: Bankruptcy News: ResCap's exclusive right to bankruptcy plan extended to Dec. 20

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ResCap's exclusive right to bankruptcy plan extended to Dec. 20 Sep 11th 2012, 19:06 By Caroline Humer NEW YORK, Sept 11 | Tue Sep 11, 2012 3:06pm EDT NEW YORK, Sept 11 (Reuters) - Residential Capital's exclusive right to present a plan to get out of bankruptcy was extended until Dec. 20 during a court hearing on Tuesday, a company spokeswoman said. The court's decision fell short of the nine-month extension that ResCap, a home mortgage lender that filed for bankruptcy in May, had requested. Companies ask for such extensions - often several times during the course of a bankruptcy - in order to bar creditors from presenting competing legal plans for the company to get out of bankruptcy. ResCap, a unit of Ally Financial, said in court papers that it needed a nine-month extension because of the complexity of the case and to give it time to examine a report by an independent bankruptcy examiner. That report is expected to be published in January. The court-appointed examiner is looking at settlements and agreements that ResCap struck ahead of the bankruptcy with some creditors, as well as other financial details of the bankruptcy. ResCap cannot file its plan, which will include details of payouts to creditors, until after the examiner's report is released. Aurelius Capital Management, a creditor, objected to the nine-month extension sought by ResCap, calling it excessive and saying the company needed a "shorter leash." An ad hoc group of bondholders also objected, saying the requested extension was too long. The ResCap spokeswoman did not have an immediate comment on the fact that a shorter extension was granted. Link this Share this Digg this Email Reprints

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