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Residential Capital LLC warned Tuesday it has to raise an
additional $1.4 billion by the end of June to meet liquidity needs
after it was unable to consummate certain asset sales.
The stressed mortgage lender in a Securities and Exchange Commission filing said it had previously expected to need to raise $600 million by June 30, but now needs $2 billion. ResCap said in its filing it hopes to make up the shortfall via asset sales to parent GMAC LLC and Cerberus Capital Management LP, which controls GMAC. ResCap said it has agreements in principle to sell GMAC its resort finance business, while Cerberus has agreed to buy or backstop performing and nonperforming mortgage assets. ResCap -- widely viewed as GMAC's crown jewel in 2006 when Cerberus purchased the finance company -- has been kept afloat by as estimated $5.5 billion or more in cash infusions and other support from GMAC and GMAC's owners since the deal closed. - Lou Whiteman See full story on TheDeal.com See related story: Cerberus takes a bruising See earlier story: Cerberus, GM rush to aid GMAC unit CategoriesPrivate capital video
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