Bankruptcy Law News

Bankrupt Ditech Wants to Disband Consumer Borrower Committee

May 9, 2019, 6:10 PM

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...
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