ResCap gets examiner to investigate fraudulent transfer claims

By Sahara Marte

New York, June 18 - Residential Capital, LLC's creditors committee received approval for an examiner to look into allegations of fraudulent transfer at the company during a hearing Monday in the U.S. Bankruptcy Court for the Southern District of New York.

"Appointment of an examiner is required and appropriate," judge Martin Glenn said, announcing his decision to name an examiner for the case.

He approved a process in which the examiner and the committee will closely work together.

As previously reported, unsecured creditor Berkshire Hathaway Inc. and the official committee of unsecured creditors asked for an examiner because, they said, the ResCap debtors' first-day bankruptcy pleadings and public securities filings reveal dozens of transactions with Ally and its affiliates involving billions of dollars of assets transfers and intercompany financing.

Berkshire Hathaway said these transactions' net effect was to transfer a substantial share of ResCap's operating assets to its parent.

Residential Capital, a New York-based real estate finance company, filed for bankruptcy on May 14. The case number is 12-12020.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.