Ditech Files For Chapter 11 Bankruptcy
Ditech Holding Corporation, the parent company of Reverse Mortgage Solutions, says its voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code won’t have a long-term impact on its reverse mortgage holders. Some clients did see a temporary delay in payments, according to company officials.
According to a Reverse Mortgage Daily story, subsidiaries including Ditech Financial and Reverse Mortgage Solutions will be entering into a Restructuring Support Agreement (RSA) with some lenders that control over 75 percent of Ditech Holding’s term loans. Ditech said in press release, under the RSA, a recapitalization will be pursued that deleverages its capital structure by extinguishing over $800 million in corporate debt.
Reverse Mortgage Daily also reported in November 2018, Ditech was delisted from the New York Stock Exchange following warnings that stemmed from its failure to meet listing standards. Earlier that year, Ditech emerged from bankruptcy after having previously done business under the name Walter Investment Management Corporation.
In connection with the court-supervised bankruptcy process, Ditech has received commitments for up to $1.9 billion in debtor-in-possession financing to support its operations during the Chapter 11 process.
