and the Official Committee of Unsecured Creditors (“Plan”) was confirmed by the Court on December 11, 2013 and became effective on December 17, 2013.
Res Cap Liquidating Trust, a Delaware statutory Trust, is the successor to the Debtors by operation of the Plan.
Court documents and other information regarding the Chapter 11 proceedings can be found at
In fact, a liquidating trust can be a cost effective, simplified structure to wind down a solvent company and realize some value for stockholders.
In the context of a managed liquidation it can be particularly effective as the final stage of a well planned wind down process.
Alternatively, the liquidating trust can be a backstop for a complete and relatively quick transfer of liquidation responsibilities to a third party trustee when a management team finds itself unable or unwilling to complete the liquidation effectively.
On May 14, 2012, Residential Capital, LLC (“Res Cap”) and certain of its domestic subsidiaries (together with Res Cap, “Debtors”) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.
The cases were filed in the United States Bankruptcy Court for the Southern District of New York.
The cases have been jointly administered under case number 12-12020.
The Second Amended Joint Chapter 11 Plan proposed by Residential Capital, LLC, et al.
The following links to a series of Frequently Asked Questions (FAQs), which may be periodically updated: Res Cap Liquidating Trust FAQ **Important Note: If you are a borrower whose residential mortgage loan was serviced by the Debtors prior to or during the Chapter 11 proceedings and you timely filed a claim in those proceedings, it is highly likely that your questions are best directed to Peter S.
Kravitz, as representative of the Borrower Claims Trust created under the Plan.
The Borrower Claims Trust was established for the sole benefit of the holders of Allowed Borrower Claims and is administered by the Borrower Claims Trustee.
To many the words “liquidating trust” connote bankruptcy, but that need not always be the case.