Residential Capital LLC one step closer to exiting bankruptcy
26 September 2013
On September 13 a United States Federal Bankruptcy Court approved Residential Capital’s mortgage-backed securities settlement with bond insurer Financial Guaranty Insurance Company (FGIC). The terms of the deal include a $253.3 million payment to the debtor-related mortgage-backed securities trusts insured by FGIC. The court found that the agreement was fair and equitable and in the best interests of the estate.
Law Debenture Trust Company of New York is the separate trustee for eight of the affected trusts.