Global law firm White & Case LLP today announced it is representing a group of bondholders, including institutional holders and secondary holders, with more than $800 million of secured bonds from Rescap.
The investors, known as Secured Bondholder Group, has been organized in response to recent press reports that sources close to Ally Financial, the parent company of Rescap, were considering causing Rescap to file for bankruptcy protection. The 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 expected to increase in size and number.
The bondholders are 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."
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