Ditech Plan Settles Creditor Objections With Improved Recoveries

May 8, 2019, 7:54 PM UTC

New bankruptcy plan from Ditech Holding Corp. settles objections of unsecured creditors’ committee by improving the group’s recoveries with money carved out of the collateral that secures term loan claims, according to a new court filing.

Settlement comes after negotiations between co., creditors’ committee and term loan ad hoc group: filing

Earlier plan distributed nothing to holders of second-lien notes and general unsecured claims

New plan notes that on May 2 the U.S. Trustee appointed a consumer creditors’ committee to protect interests of consumer borrowers, including some hurt in mortgage scam

CASE: Ditech Holding Corp., Bankr. S.D.N.Y., No. 19-10412, 5/8/19

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