Bankrupt mortgage service Ditech Holding Corp. wants to disband the official committee of consumer creditors, a May 8 court filing 8 states.
- The company is at critical stage of bankruptcy as it markets assets, runs complex business and preserves option for reorganization.
- Appointment of consumer creditors’ committee could introduce unnecessary complexity and jeopardize entire reorganization: motion
- If the court does not disband committee, its scope should be limited to treatment of consumer borrower claims and its fees and expenses should be limited to $250,000
- The term loan ad hoc group filed statement in support of co. motion later May 8...