Ditech Plan Allows Some Borrower Claims, But No Monetary Damages

The latest reorganization plan from Ditech Holding Corp. will allow some consumer borrower claims against the company, but not any claims that would result in monetary damages against Ditech, according to new court papers.

• The disclosure statement for the bankrupt mortgage servicer’s reorganization plan was amended to read that in a reorganization transaction, all claims would be canceled except “borrower non-discharged claims.” Earlier plans canceled all claims with no exceptions.
• “Borrower non-discharged claims” are defined in the plan as those made to resolve claims involving foreclosure or reverse foreclosure or those involving co. failure to comply with loan modification ...