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    Ally Said to Get ResCap Bondholder Backing for Bankruptcy

    18.05.12 , The auto lender majority-owned by U.S. taxpayers, received an oral commitment from bondholders of Residential Capital to support a bankruptcy filing for the mortgage unit that could come early next week, people with direct knowledge of the talks said.

    The investors were given material, nonpublic information and are negotiating final details of what they’d receive to settle their for ResCap, which may shorten disputes and court proceedings, and in turn make it easier for Ally to repay a U.S. bailout that left the U.S. Treasury Department with a 74 percent stake. A ResCap bankruptcy would rank among the largest tied to a Treasury-owned asset since General Motors Corp. won court protection in 2009.


    Source: BusinessWeek

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