Ally Discloses ResCap Settlement Amount
Ally Financial Inc. has unveiled the terms of its proposed settlement with creditors of its bankrupt former subsidiary, Residential Capital LLC.

The New York-based company announced earlier this month that it had reached a settlement with ResCap bankruptcy estate and its major creditors that will "settle all existing and potential claims between Ally and ResCap and all potential claims held by third parties related to ResCap that could be brought against Ally and subsidiaries that are not Chapter 11 debtors, except for securities claims by the Federal Housing Finance Agency and the Federal Deposit Insurance Corp., as receiver for certain failed banks."

Terms of the settlement, which was subject to approval by the bankruptcy court and definitive documentation, were kept confidential until the debtors filed a motion to approve the plan support agreement.
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