Residential Capital LLC, the bankrupt mortgage unit of Ally Financial Inc. (ALLY:US), could pay 105 cents on the dollar to junior secured guaranteed note holders under in the company’s bankruptcy plan announced yesterday.
The 9.625 percent notes due 2015 are projected to pay out par plus accrued, including 93 cents on the dollar of secured recovery and another 12 cents in unsecured funds, according to a document prepared for bondholders by Houlihan Lokey and obtained by Bloomberg News. The figures used estimated market values as of Dec. 31, 2012, according to the document.
To contact the reporter on this story: Dakin Campbell in San Francisco at firstname.lastname@example.org
To contact the editor responsible for this story: David Scheer at email@example.com