Ally Financial Inc. says Residential Capital LLC's creditors "cannot come close" to proving that Ally is responsible for the liabilities in ResCap's bankruptcy case, the Wall Street Journal reported today. Ally said in a court filing that at the very least, the creditors' bid to sue it on behalf of ResCap is premature, and the contention that Ally "pierced the corporate veil" in its dealings with subsidiary ResCap will be a difficult case for creditors to win. Last month, ResCap's unsecured creditors' committee sought the right to sue Ally over its relationship with ResCap, saying that it thought Ally could be on the hook for all $20 billion to $25 billion in ResCap's liabilities. When the ResCap bankruptcy case began last spring, Ally had proposed to pay $750 million to ResCap's estate as long as it was released from liabilities. Creditors have consistently balked at that number, throwing the case into uncertainty.
