Residential Capital LLC ( fka RDCC)

[Enterprising Investor]

Ex-Enron, Chrysler Bankruptcy Judge Named ResCap Examiner (7/03/12)

By David McLaughlin - Jul 3, 2012 4:26 PM CT

Arthur Gonzalez, the former judge who oversaw the bankruptcies of Enron Corp. and Chrysler LLC, was appointed to investigate Residential Capital LLC’s proposal to settle legal claims against parent Ally Financial Inc. (ALLY)

Gonzalez was appointed examiner in ResCap’s bankruptcy case by the U.S. Trustee, a part of the Justice Department that monitors bankruptcy proceedings, according to a court filing today.

U.S. Bankruptcy Judge Martin Glenn in June granted a request from Berkshire Hathaway Inc., the holding company run by billionaire Warren Buffett, for an investigation of ResCap’s proposal to accept $750 million from Ally to settle potential legal liability tied to mortgage-related securities.

ResCap, based in New York, filed for bankruptcy in May with plans to sell most of its assets to Fortress Investment Group LLC. (FIG)

Gonzalez, who retired as a bankruptcy judge on March 1, is a senior fellow at New York University School of Law, where he teaches bankruptcy law, according to a court filing. He said he will charge $750 an hour.

The case is In re Residential Capital LLC, 12-12020, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at [e-mail]

http://www.bloomberg.com/news/2012-07-03/ex-enron-chrysler-bankruptcy-judge-named-rescap-examiner.html