ResCap Court Struggle Takes New Turn

ResCap Court Struggle Takes New Turn The legal tussle over the assets of Ally Financial's ailing Residential Capital (ResCap) unit took another twist yesterday when a U.S. Bankruptcy Court judge gave Fortress Investment Group's Nationstar Mortgage Holdings Inc. unit approval to be the opening bidder on ResCap's assets.

According to a Reuters report, this ruling rebuffs efforts by Warren Buffett's Berkshire Hathaway Inc. to be the ‘stalking horse,’ or initial bidder, on ResCap's assets. ResCap said that it has already reached a deal with Fortress Investment Group LLC after Ally filed a Chapter 11 bankruptcy for its failing ResCap unit.

Other potential buyers will be able to bid on ResCap's assets during the company's Chapter 11 bankruptcy process. A ResCap spokesperson welcomed the ruling, saying that the company was encouraged in the interest over its assets.


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