May 13 A report by a court-appointed independent
examiner into dealings between Residential Capital LLC and the
bankrupt lender's parent, Ally Financial Inc, has been filed
under seal, a lawyer for the examiner said on Monday.
The report is expected to clarify if ResCap creditors are
owed up to $25 billion by Ally for allegedly stripping ResCap of
valuable assets before it filed for bankruptcy.
Howard Seife, an attorney for the examiner, told Reuters the
report had be filed with the U.S. Bankruptcy Court in Manhattan
The report will be unsealed if ResCap creditors and Ally
fail to reach a settlement agreement by 11 a.m. Tuesday, the
Manhattan bankruptcy court was told on Monday.
ResCap creditors have alleged they could be owed billions of
dollars by Ally because it stripped valuable assets from ResCap
prior to its bankruptcy.