Residential Capital LLC, a subsidiary of Ally Financial Inc., has reportedly hired outside consultants to advise on a potential restructuring of the company.
According to compiled reports, ResCap has contracted with Centerview Partners LLP, an investment banking advisory firm, to consider its options – bankruptcy included. A Bloomberg report noted that the lender lost $442 million in the third quarter.
According to a Wall Street Journal report, Ally has enlisted Evercore Partners and law firm Kirkland & Ellis to advise on ResCap.
Ally is considering restructuring ResCap because buttoning up lingering issues with the subsidiary would make it easier for the parent company to issue an initial public offering, the WSJ reported, citing unnamed sources familiar with the matter.