Residential Capital LLC's creditors want the right to sue ResCap parent Ally Financial Inc. over dealings between the entities before and since ResCap's bankruptcy filing, which, if successful, could put government-controlled Ally on the hook for all $20 billion to $25 billion in ResCap's liabilities, Dow Jones Daily Bankruptcy Review reported today. In a court filing on Thursday, ResCap's unsecured creditors' committee said that its investigation into the relationship between the two companies "paints a stark picture" of Ally's "domination, control, and abuse" of ResCap. A hearing on whether the creditors can sue over the matter is set for April 30.
