Wall Street Journal (05/14/08) P. C1; Ng, Serena
Residential Capital (ResCap) is looking to restructure its debt outstanding by offering to exchange $12.8 billion of its bonds for new debt with later maturation dates. However, some bondholders do not like the terms and might fight back, even though their only alternative is a company in bankruptcy. While some investors would be forced to take on longer-dated securities, the new debt being offered will leave some bondholders with weaker claims to the GMAC unit's assets if it ends up in Chapter 11. Bondholders have until early next month to decide whether to accept the offer.
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