Attorney Search
Site Search
For all media inquiries, please contact:
Kate Fairweather
+44 20 7710 9842

For U.S. media inquiries, please contact:
Jack Pettit
+1 212 696 6920

Email Page Print Friendly Page Share


March 17, 2014
Curtis-counseled ResCap Restructuring Cited as 2013 M&A Advisor Turnaround Awards Sec. 363 Sale of the Year


The sale of Residential Capital LLC in bankruptcy was honored as the 2013 M&A Advisor Turnaround Awards Sec. 363 Sale of the Year (Over $1 Billion). 

Curtis, Mallet-Prevost, Colt & Mosle LLP acted as conflicts counsel to Residential Capital (ResCap) and played a key role in resolving numerous objections to the asset sales raised by conflict parties.

The case was one of the most complex bankruptcies in history and was the largest filed in 2012. Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York confirmed ResCap’s Chapter 11 Plan, called the proceeding “the most legally and factually complex case” that he presided over in his seven years on the bench. 

ResCap operated the fifth largest mortgage servicing business and tenth largest mortgage origination business in the United States, servicing $374 billion of residential mortgage loans. ResCap and 50 of its affiliates filed their Chapter 11 bankruptcy cases in the United States Bankruptcy Court for the Southern District of New York in May 2012. ResCap entered bankruptcy with stalking horse bids from two entities to purchase the mortgage loan servicing and origination business and ResCap’s legacy loan portfolio.

The Bankruptcy Court held two auctions for ResCap’s assets. The Court ultimately approved the sale of ResCap’s legacy mortgage assets to Berkshire Hathaway, Inc., and the sale of ResCap’s mortgage origination and servicing business to Ocwen Loan Servicing, LLC, and Walter Investment Management Corp for a total of approximately $4.5 billion. The sale came about after hard-fought negotiations and many rounds of bidding. It withstood numerous objections filed by various secured and unsecured creditors and governmental entities such as the United States.

The final selling price for ResCap’s assets resulted in $1 billion more than originally anticipated under the stalking horse agreements. ResCap was the first regulated servicing company that continued to service and originate mortgages while in bankruptcy so that it could be sold as a going concern, preserving hundreds of millions of dollars of value for the benefit of creditors. The sales were a key piece in ResCap’s bankruptcy, which concluded in December 2013 with the confirmation of an ultimately consensual Chapter 11 plan.

The Curtis team of lawyers advising ResCap was led by Restructuring and Insolvency Group partner Steven J. Reisman and included Litigation partners Theresa Foudy, Michael J. Moscato, and Jonathan J. Walsh, Restructuring and Insolvency counsel Maryann Gallagher, and associates Ellen Tobin, Peter Buenger, Daniel Bloom, and Bryan Kotliar. Curtis was one of several legal and professional firms advising on the matter.

The award was presented at a Gala Dinner in Palm Beach, Florida on March 11, 2014. The Annual M&A Advisor Turnaround Awards assembles the leading distressed investing, restructuring and turnaround deal-making professionals to honor their excellence in deal making, restructuring and financing and celebrate the contributions and achievements of leading firms and professionals.

Curtis’ Restructuring and Insolvency Group regularly advises debtors, creditors’ committees, secured and unsecured creditors, financial institutions, equity owners and investors, trustees, liquidators and court-appointed fiduciaries, and foreign and domestic governmental agencies in all facets of restructuring and insolvency matters both in and out of court. Curtis has developed a national reputation as the leading law firm in “conflicts counsel” engagements in large and complex Chapter 11 restructurings on both the debtor and creditors’ committee sides.

Curtis, Mallet-Prevost, Colt & Mosle LLP is a leading international law firm providing a broad range of services to clients around the world. Curtis has 16 offices in the United States, Latin America, Europe, the Middle East as well as Central and East Asia. The firm’s international orientation has been a hallmark of its practice for nearly two centuries. For more information about Curtis, please visit

International Lawyers