ResCap Plan of Reorganization Approved by U.S. Bankruptcy Court
Ally achieves broad releases for past, present and future mortgage-related claims
NEW YORK, Dec. 11, 2013 /PRNewswire/ -- The Bankruptcy Court Judge overseeing Residential Capital's (ResCap) Chapter 11 cases will enter an order confirming ResCap's Chapter 11 Plan, marking the court's formal approval of broad releases for all mortgage-related claims against Ally Financial Inc. and its subsidiaries (Ally), subject to certain limited exceptions. The parties expect the Chapter 11 Plan to become effective within the next week.
"This marks a key milestone for Ally, and the ResCap chapter in our history is officially behind us," said Chief Executive Officer Michael A. Carpenter. "Confirmation of the ResCap Plan offers broad and permanent releases of substantially all past, present and future mortgage-related claims, which is a key point of progress for Ally in achieving nearly complete closure for mortgage liabilities.
"Ally is a fundamentally transformed company," Carpenter continued. "We have exited non-core operations globally, addressed legacy mortgage issues and returned more than 70 percent of the investment to the U.S. taxpayer. Today, Ally has leading market positions in its core franchises, one of the strongest balance sheets in the industry, a highly regarded customer-centered philosophy, and a clear path to drive value for our shareholders."
Ally is represented in ResCap's Chapter 11 cases by Kirkland & Ellis LLP and Evercore Partners.
About Ally Financial Inc.
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $150.6 billion in assets as of Sept. 30, 2013, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
SOURCE Ally Financial
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