Morrison & Foerster acts as lead bankruptcy counsel to Residential Capital LLC (ResCap) and its affiliated debtors in the largest chapter 11 case filed in 2012. Until the sale of its loan origination and servicing platforms earlier this year, ResCap was one of the largest real estate mortgage companies in the world. On June 26, 2013, the bankruptcy court approved a plan support agreement entered into by ResCap and its major creditors, which contemplates a chapter 11 plan in which former parent Ally Financial Inc. will contribute $2.1 billion to the debtors’ estates.
The plan support agreement is a product of months of negotiations between parties with very different interests, and its approval is a major step toward a consensual plan confirmation process and, ultimately, the resolution of the bankruptcy.
New York partner and chair of MoFo’s Business Restructuring & Insolvency Group Gary Lee is leading the ResCap bankruptcy team, which also includes partners Anthony Princi, Lorenzo Marinuzzi, Norman Rosenbaum, Stefan Engelhardt and Todd Goren.
The MoFo victory and court decision was covered by Dow Jones Business News, The Deal, Leveraged Loan and Law360.