Bloomberg News

AIG Among Insurers Chosen for ResCap Creditors Committe

May 16, 2012

American International Group Inc. (AIG:US), the bailed-out insurer, Allstate Corp. (ALL:US) and FGIC Corp. were named members of the unsecured-creditors committee for Residential Capital’s bankruptcy.

Insurers and trustees for residential mortgage-backed securities are among the committee’s nine members, according to a filing in U.S. Bankruptcy Court in Manhattan.

Bond insurer MBIA Inc. (MBI:US), Wilmington Trust, Deutsche Bank AG (DBK), Bank of New York Mellon Corp. (BK:US) and U.S. Bancorp are also members, according to the filing by the U.S. Trustee. The ninth member is a representative of plaintiffs in a mortgage-lending lawsuit.

ResCap, the mortgage unit of taxpayer-owned Ally Financial Inc. (ALLY:US), sought court protection May 14 after losses piled up on subprime and Alt-A mortgages that were bundled into bonds during the credit crisis. The committee will negotiate on behalf of unsecured creditors seeking payment from ResCap.

The U.S. Trustee, part of the Justice Department, monitors bankruptcy proceedings and selects members of the committee to represent unsecured creditors.

The case is In re Residential Capital LLC, 12-12020, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporters on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net; David McLaughlin in New York at dmclaughlin9@bloomberg.net.

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; John Pickering at jpickering@bloomberg.net


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Companies Mentioned

  • AIG
    (American International Group Inc)
    • $54.52 USD
    • 0.04
    • 0.07%
  • ALL
    (Allstate Corp/The)
    • $58.2 USD
    • 0.13
    • 0.22%
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