Beyond Bankruptcy

A judge said Wednesday he will approve a $2.1 billion settlement involving mortgage lender Residential Capital LLC and parent company Ally Financial Inc. that could help Ally move forward on repaying its U.S. government bailout. Read the Daily Bankruptcy Review article here.

A federal appeals court on Wednesday ruled that the federal government went too far when seizing assets to repay Scott Rothstein’s Ponzi scheme victims, handing a victory to bankruptcy trustees. Read the Daily Bankruptcy Review article here.

Jefferson County, Ala., leaders voted Tuesday to accept a debt-settlement plan that will dramatically slash the $3.1 billion owed on its sewer system and allow the struggling county to get out of bankruptcy. Read the Daily Bankruptcy Review article here.

Ally Financial Inc. said Thursday it will pay $2.1 billion to its mortgage subsidiary Residential Capital and the unit’s creditors under an agreement reached last week that could move the Detroit-based lender closer to repaying its government bailout. Read the Daily Bankruptcy Review article here.

Residential Capital LLC is suing a group of junior bondholders to block them from wresting control of the subprime mortgage lender’s bankruptcy case. Read the Daily Bankruptcy Review article here.