Rescap Liquidating Trust (OTCMKTS: RESCU) is a dedicated vehicle established under the Chapter 11 plan of Residential Capital, LLC to oversee the orderly liquidation of the company’s remaining assets. Formed in mid-2012 following the bankruptcy of its former parent—GMAC Mortgage, a unit of Ally Financial—the trust holds an array of legacy mortgage-related interests that continue to generate cash flow as they are monetized over time.
The trust’s primary activities include the disposition of mortgage servicing rights, the sale or resolution of non-performing loan portfolios, and the pursuit or settlement of litigation claims stemming from both borrower and investor disputes. In addition, Rescap Liquidating Trust manages derivative contracts, tax attributes and other contingent assets that arose during Residential Capital’s operational period. Net proceeds from these assets are distributed to eligible creditors and noteholders in accordance with the trust agreement.
Rescap Liquidating Trust focuses exclusively on U.S. residential mortgage assets, reflecting the geographic footprint of its predecessor’s origination and servicing activities. While it no longer engages in new mortgage origination or servicing, the trust continues to work with servicers, legal counsel and financial advisors to maximize recoveries and accelerate wind-down.
The wind-down process is overseen by an independent liquidating trustee in accordance with the terms of the trust agreement. With new business activities ceased, the trust’s sole objective remains the efficient administration and realization of remaining assets for the benefit of creditors, with regular reporting and distributions carried out until full liquidation is achieved.
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