MBIA Insurance Corp. has sold its claims and related rights against the bankruptcy estates of Residential Funding Co. LLC, GMAC Mortgage LLC and Residential Capital LLC to an undisclosed purchaser.
The deal will bring in “an amount that moderately exceeds the recoveries recorded” on the parent company’s MBIA Corp.’s 3Q13 balance sheet, according to an 8-K filing obtained via DisclosureNet.com.
In August, a disclosure statement filed as part of the bankruptcy said the expected recovery was going to be approximately $828 million, according to MBIA’s third quarter 10-Q.
MBIA had
Approximately $72 million of the proceeds of the sale is being used to repay all outstanding borrowing, interest and expenses of a $500 million secured loan made by Blue Ridge Investments. The loan is being terminated because the aggregate proceeds from the claim sale exceeds Blue Ridge’s commitment amount, the filing says.