Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Walter Investment Management Plan Effective, Summarized

Walter Investment Management's Amended Prepackaged Chapter 11 Plan of Reorganization [Modified] became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on January 18, 2018. The Company has chosen Ditech Holding Corporation as the new name for its parent company, as it reflects the Company's focus on its strong core business and its commitment to serving customers. Trading in Ditech Holding's new common stock is expected to commence on February 12, 2018 under the symbol "DHCP." Through its financial restructuring, the Company eliminated approximately $800 million of outstanding corporate debt from its balance sheet and enhanced its financial flexibility. BankruptcyData's detailed Plan Summary notes, "Through the Restructuring Support Agreement, the Debtor expects to reduce its outstanding corporate debt by approximately $600 million (from approximately $2.1 billion as of September 30, 2017, to approximately $1.5 billion as of the day after the Effective Date of the Restructuring), extend the maturity date of its Term Loan, and enhance the Debtor's financial flexibility as it continues the ongoing transformation of its business....The Restructuring Support Agreement is expected to enhance the Debtor's long-term growth prospects and to allow the Debtor's management team to increase its focus on operational performance and value creation." John R. Brecker and Samuel T. Ramsey replace certain directors that were previously expected to serve on the board of the reorganized Debtor. George M. Awad, Daniel Beltzman, Neal Goldman, David Ascher, Seth Bartlett, Thomas Marano, Thomas Miglis are also present directors. George M. Awad, a continuing member of Ditech Holding's board, comments, "Ditech Holding is beginning its next chapter with increased financial flexibility and continued momentum in our efforts to transform our business. We are excited about the prospects of our core business and are confident that we are well positioned to drive profitable growth and create value for our shareholders." This mortgage banker filed for Chapter 11 protection on November 30, 2017, listing $16.8 billion in pre-petition assets. Visit BankruptcyData for the full Plan Summary.

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