Berkshire Hathaway offered to buy Residential Capital’s mortgage unit, and seeks to replace Fortress Investment Group (FIG) as the initial bidder, according to a Bloomberg article.
Berkshire, the holding company run by billionaire Warren Buffett, is also willing to become the initial bidder on ResCap’s loan portfolio that Ally Financial wants to buy, and said in court papers filed Monday that it would offer better terms than Fortress and Ally.
U.S. Bankruptcy Court Judge Martin Glenn is scheduled to consider approving auctions for ResCap’s assets and naming Fortress’ Nationstar Mortgage Holdings and Ally as the initial bidders.
“Both offers will remain open for the court to approve and the debtors to execute on or before June 19,” Berkshire said.
