Still unclear in Tuesday's report by The Post is if and how Ally Bank would get ResCap creditor support for a possible bankruptcy sale to Fortress.
Last fall, Reuters reports indicated that bidders for ResCap included Fortress, Ally Bank's former owner Cerberus and a co-bid from Centerbridge Partners and Leucadia National (LUK).
In December, Bloomberg reported that Berkshire Hathaway (BRK.A - Get Report) could take an equity stake in the unit, in a pre-packaged bankruptcy where bonds are converted to share holdings. With $500 million in Ally and ResCap bonds, Berkshire is one of ResCap's largest creditors. Overall, the unit's largest bondholder is Pacific Investment Management.
In January, a group of creditors representing $800 million worth of bonds formed a consortium to seek alternatives to a bankruptcy filing that may best preserve their claims. "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," said the creditors in a Jan. 9 statement. "A forced Rescap filing would be a big mistake and create significant litigation against Ally," they added.To be seen is if the reported sale would get support from the creditor group; however, with strategic value to Ally Bank's deposit taking and auto lending businesses and some uncertainty removed from its mortgage unit, asset sales could be a way for the Treasury to have its loans repaid. "