Residential Capital won court permission to repay more than $1.9 billion in debt immediately, including $1.1 billion to parent Ally Financial that the defunct mortgage company borrowed before filing for bankruptcy, Bloomberg reports.
ResCap will make the payments before finishing a plan to distribute more than $4 billion in cash to all creditors, who are owed at least $6.3 billion. ResCap has said the payments will save it more than $3 million a month in interest costs and won’t be unfair to lower-ranking creditors because the money will go to pay senior debt.
