Relevant Deadlines & Court Hearings
ResCap Chapter 11 Plan
On June 26, 2013, the Bankruptcy Court entered an order (the “Plan Support Agreement Order”) (i) granting the Debtors’ motion to approve the Plan Support Agreement and the term sheets attached as exhibits thereto and (ii) authorizing the Debtors to enter into the Plan Support Agreement, which includes the terms of a proposed plan of reorganization under which the claims of the RMBS Trusts would be settled. The Plan Support Agreement Order is available on this website.
On August 23, 2013, the Bankruptcy Court entered an order granting the Debtors’ motion to approve the Disclosure Statement for the Chapter 11 Plan (the “Disclosure Statement Approval Order”) as containing adequate information. The Disclosure Statement Approval Order is available on this website. On August 23, 2013, the Debtors and the Official Committee of Unsecured Creditors filed a corrected solicitation version of the Disclosure Statement and the Chapter 11 Plan. The Disclosure Statement is available on this website. The Chapter 11 Plan filed on August 23, 2013 is available on this website.
On October 11, 2013, the Debtors and the Official Committee of Unsecured Creditors filed the Plan Supplement, which includes updated RMBS Trust Claims schedules. The updated RMBS Trust Claims schedules are available on this website.
The hearing to approve the Chapter 11 Plan commenced on November 19, 2013 and concluded on November 25, 2013. On December 3, 2013, the Debtors and the Official Committee of Unsecured Creditors filed the Second Amended Joint Chapter 11 Plan reflecting, among other things, a settlement resolving the claims of certain holders of the Debtors’ junior secured notes and a notice of a proposed resolution of litigation regarding the junior secured notes claims and opportunity to change votes with respect to the Second Amended Joint Chapter 11 Plan (the “Notice of Proposed Resolution of JSN Claims”). The Second Amended Joint Chapter 11 Plan is available on this website. The Notice of Proposed Resolution of JSN Claims is available on this website.
On December 5, 2013, the Debtors and the Official Committee of Unsecured Creditors filed the proposed Findings of Fact and a revised proposed Confirmation Order as amended to incorporate the settlement with certain holders of the Debtors’ junior secured notes. The proposed Findings of Fact are available on this website. The Confirmation Order is available on this website. On December 6, 2013, the Debtors and the Official Committee of Unsecured Creditors filed the revised Second Amended Chapter 11 Plan. The revised Second Amended Chapter 11 Plan is available on this website.
The hearing to consider entry of the Confirmation Order took place on December 11, 2013 before the Honorable Martin Glenn, at the United States Bankruptcy Court for the Southern District of New York, Alexander Hamilton Custom House, One Bowling Green, New York, New York 10004.
On December 11, 2013, the Bankruptcy Court entered the Order Confirming Second Amended Joint Chapter 11 Plan Proposed by Residential Capital LLC, et al. and the Official Committee of Unsecured Creditors [Docket No. 6065] and the Findings of Fact in connection with the Confirmation Order [Docket No. 6066].
As set forth in the Notice of Entry of Confirmation Order Confirming the Second Amended Joint Chapter 11 Plan Proposed by Residential Capital LLC, et al. and the Official Committee of Unsecured Creditors and Occurrence of Effective Date, dated December 17, 2013 [Docket No. 6137], the Effective Date of the Plan occurred on December 17, 2013.
FGIC Rehabilitation Proceeding and FGIC Settlement Agreement
On May 30, 2013, the New York State Supreme Court in the Rehabilitation Proceeding of Financial Guaranty Insurance Company (“FGIC”) ( the “FGIC Rehabilitation Proceeding”) (Index No. 401265/2012) entered an Order to Show Cause (the “Order to Show Cause”) setting a hearing for August 6, 2013 at 10:00 a.m. regarding the approval of (i) the settlement agreement (the “FGIC Settlement Agreement”) among ResCap, FGIC and the RMBS Trustees, among others, in respect of those RMBS Trusts for which FGIC has provided insurance coverage, and (ii) the relevant portions of the Plan Support Agreement. Objections, if any, were required to be filed and served on or before July 16, 2013. Pleadings regarding the Order to Show Cause are available or will be available at www.fgicrehabilitation.com and http://www.rescaprmbssettlement.com.
On June 7, 2013, the Debtors filed with the Bankruptcy Court a motion to approve the FGIC Settlement Agreement. The motion is available on this website.
On August 16, 2013, the New York State Court entered an order in the FGIC Rehabilitation Proceeding approving the FGIC Settlement Agreement, a copy of which is available on this website. On October 4, 2013, Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Monarch Alternative Capital LP, Stonehill Capital Management LLC, Bayview Fund Management LLC, CQS ABS Master Fund Limited and CQS ABS Alpha Master Fund Limited (the “Monarch Group”) filed notices of appeal to the Appellate Division of the New York Supreme Court in and for the First Department. Freddie Mac and the Monarch Group are appealing from the New York State Court order approving the FGIC Settlement Agreement. A copy of the Freddie Mac notice of appeal is available on this website, and a copy of the Monarch Group notice of appeal is available on this website. Pleadings regarding the FGIC Rehabilitation Proceeding are available or will be available at www.fgicrehabilitation.com and http://www.rescaprmbssettlement.com.
On September 13, 2013, the Bankruptcy Court entered a memorandum opinion approving the FGIC Settlement Agreement. The memorandum opinion is available on this website. On September 20, 2013, the Bankruptcy Court entered an order granting the Debtors’ motion to approve the FGIC Settlement Agreement. The order is available on this website.
On October 4, 2013, certain Certificateholders who objected to the FGIC Settlement Agreement in the State and Bankruptcy Courts filed a Notice of Appeal from the State Court Order. On October 4, 2013, the Ad Hoc Group of Junior Secured Noteholders (the “JSNs”) filed a Notice of Appeal from the Bankruptcy Court Order [Docket No. 5286].
Under its terms, on the Plan Effective Date, which occurred on December 17, 2013, the Bankruptcy Court Order Appeal was automatically deemed finally and irrevocably settled, and on December 18, 2013, a stipulation withdrawing the Bankruptcy Court Order Appeal was filed. On December 18, 2013, Notices of Withdrawal of Appeal were filed withdrawing with prejudice the State Court Order Appeals.
As a result of the withdrawal of the Bankruptcy Court Order Appeal and the State Court Order Appeals, the final preconditions to the Effective Date of the FGIC Settlement Agreement were satisfied and the Effective Date of the FGIC Settlement Agreement occurred on December 18, 2013.
In General
Any pleadings filed in the Bankruptcy Court regarding the FGIC Settlement Agreement, the Solicitation Procedures Motion, the Chapter 11 Plan and the Disclosure Statement are available or will be available shortly after they are filed with the Bankruptcy Court on ResCap’s claims agent website at http://www.kccllc.net/rescap and on this website. Documents filed in the Bankruptcy Court may also be viewed during normal business hours at the Clerk’s Office of the Bankruptcy Court, located at One Bowling Green, New York, New York 10004.
This is not intended as a summary, nor does it provide a detailed restatement of the Chapter 11 Plan, the Disclosure Statement, the Confirmation Order, the Plan Support Agreement or the FGIC Settlement Agreement, relevant law or relevant legal procedures. The RMBS Trustees do not intend to update any information with respect to the matters addressed herein, and Certificateholders and other potentially interested persons are urged to review carefully the Chapter 11 Plan, the Disclosure Statement, the Confirmation Order, the Plan Support Agreement and the term sheets attached thereto, the FGIC Settlement Agreement, any related notices, and other related pleadings that have been filed, and that subsequently may be filed, in ResCap’s Chapter 11 Cases and/or the FGIC Rehabilitation Proceeding, and to consult with their own legal and financial advisors.