A report by a court-appointed independent examiner into dealings between Residential Capital LLC and the bankrupt lender's parent, Ally Financial Inc., has been filed under seal, a lawyer for the examiner said yesterday, Reuters reported. The report is expected to clarify if ResCap creditors are owed up to $25 billion by Ally for allegedly stripping ResCap of valuable assets before it filed for bankruptcy. The report will be unsealed if ResCap creditors and Ally fail to reach a settlement agreement by 11 a.m. Tuesday, the bankruptcy court was told yesterday. ResCap creditors have alleged they could be owed billions of dollars by Ally because it stripped valuable assets from ResCap prior to its bankruptcy.
