Residential Capital LLC, the bankrupt former mortgage company, will ask a judge today to approve a $2.1 billion deal with its parent Ally Financial Inc. before unveiling a report into the disputes they settled, Bloomberg News reported today. The companies and their allies among ResCap’s creditors will be in federal court in Manhattan, seeking approval of a plan support agreement that requires them to back the proposed deal. If Bankruptcy Judge Martin Glenn makes public an $80 million investigative report about ResCap’s pre-bankruptcy relationship with Ally too early, the deal could fall apart, the companies say. The settlement, reached last month, helps Ally move closer to repaying a U.S. bailout by dodging lawsuits and other claims that ResCap creditors said could be as much as $25 billion.
