ResCap Needs $1.4B More in Cash

Residential Capital Corp., which is trying to restructure its bank lines, says in a new public filing that it may need $1.4 billion in additional liquidity. The Minneapolis-based ResCap, which controls the nation's eighth-largest residential mortgage banker, said it needs additional funds because of "the inability to consummate certain asset sales, due to adverse conditions" by June 30. (It was hoping to raise $1.3 billion by selling assets.) In a filing with the Securities and Exchange Commission dated June 3, ResCap said it is negotiating with its parent company and affiliates to sell certain assets to them, including RFC Resort Funding. ResCap, the mortgage arm of GMAC Financial Services, can be found on the Web at http://www.rescapholdings.com.