NEW YORK (
has unloaded its holdings of unsecured bonds of
, the insolvent mortgage finance unit of
, days after seeking an independent investigation of transactions involving Ally and ResCap.
It is unclear whether Berkshire's sales, disclosed in a court filing on Thursday, indicate that the company has changed its position in calling for the investigation. A court document filed by Berkshire June 4 raised questions about "dozens of transactions with Ally and its affiliates involving billions of dollars of asset transfers and intercompany financing." A call and email message to Thomas Walper, attorney at Munger, Tolles & Olsen, were not immediately returned on Friday.
While Berkshire's $500 million unsecured stake represented more than half of the total unsecured debt of ResCap, Berkshire still owns $900 million--or more than 40%--of the total junior secured bonds issued by ResCap, according to court filings by Berkshire.
The unsecured bond sales were first reported by
ResCap filed for bankruptcy May 14 and proposed to sell the bulk of its assets in two separate transactions. ResCap is the fifth largest mortgage servicer in the U.S., behind
Bank of America
. The company tapped
as the lead bidder for its servicing and origination platform, though
, has said it will also bid.
Written by Dan Freed in New York
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