Facing a liquidity crunch, Residential Capital Corp. says it hopes to sell $600 million worth of assets by June 30 and is considering the auction of European mortgage-backed securities held on its balance sheet. "We are highly leveraged relative to our cash flow," the company says in a new filing with the Securities and Exchange Commission. "There is a significant risk that we will not be able to meet our debt service obligations...." ResCap, the parent of GMAC Mortgage, Horsham, Pa., the nation's seventh-largest servicer, is renegotiating its bank loans and hopes to receive a $3.5 billion senior secured credit facility from its parent company, GMAC LLC. Hedge fund giant Cerberus Capital owns a controlling stake in GMAC.
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