Secured Bondholders Holding Over $800 Million of Rescap Secured Bonds Organize Group Formed in Opposition to Speculation That Ally Will Cause Rescap To File For Bankruptcy
NEW YORK, Jan. 9, 2012 /PRNewswire/ -- A broad range of bondholders including institutional holders and secondary holders with over $800 million of secured bonds of Rescap have organized in response to recent press reports that sources close to Ally were considering causing Rescap to file for bankruptcy protection. The Secured Bondholder Group seeks to work constructively with Rescap and its advisors to ensure that secured bondholders receive the par recovery they are entitled to receive. The group is represented by White & Case and expects to increase in size and number.
The Rescap Creditor Group is concerned with media reports that assert that Ally may attempt to abandon Rescap without taking responsibility for Rescap's liabilities. Gerard Uzzi, of White & Case, who is representing the Group stated "Ally, Ally Bank and Rescap are too intertwined to be easily unwound. A forced Rescap filing would be a big mistake and create significant litigation against Ally."
SOURCE White & Case