Los Angeles Times (05/06/08)
Residential Capital (ResCap) posted a total of $5.3 billion in losses over six consecutive quarters due to rising mortgage foreclosures, and it is working hard to amend credit terms before it is found in violation of loan agreements. In order to meet debt obligations, the GMAC mortgage-finance subsidiary needs to raise $600 million by the end of June. The company is seeking $350 million ResCap notes outstanding from GMAC by the end of May and hopes to borrow $150 million more from GMAC under a credit facility already in place. Additionally, it has requested another $3.5 billion credit line from GMAC and a group of private investors, including Cerberus Capital Management. ResCap also will sell assets or engage in other strategies to generate capital.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment