Creditors ask judge to deny ResCap motion for extension

ResCap has been granted two extensions on its exclusive right to file a plan of reorganization under its current Chapter 11 bankruptcy.  The debtor is now asking for a third extension that would allow it an additional 90 days to file a proposed plan of reorganization.  Bondholders argue that granting the extension will create a “nuclear war” and will only cause creditors to become more rigid in their current positions on restructuring.  Mediation has failed to produce a consensus on a bankruptcy plan; therefore, creditors want to file their own proposed plans.

For the full story see, “ResCap’s Bondholders Call for Rival Restructuring Plans.”