More Cerberus: Hound From Hell Or Cipher?
A Ball and Chain... Last weekend, we reported on
equity LBO group Cerberus problems with GMAC & ResCap in Hound From Hell or Cipher?...
we now interupt your regular programming for an update... ResCap said in a filing to the Securities and Exchange Commission today:
"There is a significant risk that we will not be able to meet our debt service obligations,
be unable to meet certain financial covenants in our credit facilities, and be in a negative liquidity position in June 2008."
Residential Capital LLC, the mortgage- finance company owned by GMAC LLC, said
it will still need to come up with $600 million by the end of June to meet its debt requirements even if its bond exchange offer is successful.
ResCap, the eighth-largest U.S. residential lender in 2007, today began offering as little as 80 cents on the dollar
to exchange or buy back $14 billion of bonds to extend maturities and stave off bankruptcy.
To finance the restructuring, ResCap is seeking ANOTHER $3.5 billion credit facility from GMAC.
equity LBO group Cerberus problems with GMAC & ResCap in Hound From Hell or Cipher?...
we now interupt your regular programming for an update... ResCap said in a filing to the Securities and Exchange Commission today:
"There is a significant risk that we will not be able to meet our debt service obligations,
be unable to meet certain financial covenants in our credit facilities, and be in a negative liquidity position in June 2008."
Residential Capital LLC, the mortgage- finance company owned by GMAC LLC, said
it will still need to come up with $600 million by the end of June to meet its debt requirements even if its bond exchange offer is successful.
ResCap, the eighth-largest U.S. residential lender in 2007, today began offering as little as 80 cents on the dollar
to exchange or buy back $14 billion of bonds to extend maturities and stave off bankruptcy.
To finance the restructuring, ResCap is seeking ANOTHER $3.5 billion credit facility from GMAC.
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