Aurelius Argues Against ResCap Exclusivity Extension
Residential Capital LLC can’t use the pending examiner’s report to justify a nine-month expansion of the exclusive right to propose a reorganization plan, Aurelius Capital Management LP argued in papers filed yesterday in bankruptcy court.
Owning 8 percent of the 9.625 percent junior secured notes due in 2015, Aurelius calls itself the third-largest holder of the secured notes. Aurelius contends that three more months of so-called exclusivity is sufficient. A bankruptcy judge in Manhattan will decide how much is too much at a Sept. 11 hearing.