Court approves Ditech parent’s bankruptcy plan

by Paolo Taruc22 Jan 2018
A bankruptcy court has approved Walter Investment’s prepackaged financial restructuring plan, as the mortgage loan originator seeks to reduce about $800 million in outstanding corporate debt.

In a statement, Walter Investment said it expects to emerge from Chapter 11 by no later than the end of January, after the conditions to the prepackaged plan are satisfied and the firm gets on track to  complete its financial restructuring in the first quarter of 2018.

The firm filed for bankruptcy late last year. But its operating entities, including Ditech Financial and Reverse Mortgage Solutions, did not follow suit and continue to operate as usual.

In connection with the court’s approval, Walter Investment has also announced a new composition of its board of directors after it emerges from Chapter 11. Three current directors – including current chairperson George Awad – will be part of the new nine-member board. The six other directors were designated by an ad hoc group of consenting senior noteholders.

"We look forward to officially welcoming the incoming members of our board, who will bring proven track records and new perspectives from both inside and outside our industry, and will play an important role in helping guide our company forward following our financial restructuring process," Awad said.


Related stories:
Ditech parent files for bankruptcy
Mortgage banker slapped with two HUD subpoenas over former reverse arm
 

COMMENTS

Poll

Should CFPB have more supervision over credit agencies?