Most subprime lenders that went kaput ended up selling off their assets in fire sales, but Residential Capital (ResCap) is telling a different story in bankruptcy, Reuters said Wednesday.
The former mortgage lender is expected to raise at least $4 billion when it auctions off its assets during a bankruptcy auction this month, according to the report.
The article from Reuters claims ResCap, a subsidiary of Ally Financial, is coasting through Chapter 11 bankruptcy with two major bidders – Fortress Investment Group’s Nationstar Holdings ($28.57 -0.19%)and Berkshire Hathaway ($0.00 0%). Both firms want to acquire the bankrupt lender’s assets, including ResCap’s mortgage loan servicing and origination businesses.
Proceeds from the sale will be used to reimburse Ally and other investors.
Click here to read more