Walter Investment Management Corp. is preparing to leave bankruptcy protection by Jan. 31 with a plan that reduces its debt by about $800 million after a federal judge approved its chapter 11 plan, WSJ Pro Bankruptcy reported. The Fort Washington, Pa., company won court approval for a plan that will turn over most of its ownership to bondholders, according to a press release on Thursday. The company, which has more than 4,000 workers, processes payments for mortgages and reverse-mortgage loans. The approval helps bring the company’s chapter 11 case filed on Nov. 30 to a close. Under the plan, roughly $531 million of the company’s debt will be canceled and $275 million will be paid down. Lenders also agreed to extend the maturity date on their loans to June 2022 from December 2020.
