Bankruptcy Law News

Ditech Consumer Committee May Fight $1 Billion Bankruptcy Sale

June 20, 2019, 6:38 PM

A court-approved committee representing consumers may fight the proposed sale of Ditech’s mortgage servicing business because the lead bidder, New Residential Investment Corp., refuses to take on past homeowner claims against the bankrupt company, lawyers said in court.

  • New Residential is trying to buy the servicing business “free and clear” of any claims consumers may have against Ditech, Victor Noskov, representing the consumer panel, told U.S. Bankruptcy Judge James L. Garrity Jr., during a June 20 hearing in Manhattan
  • “The key issue is whether claims of consumer creditors are assumed,” Noskov says
  • Ditech lawyer Sunny Singh acknowledges the potential dispute,...

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