NEW YORK (Reuters) – Finance company GMAC LLC on Thursday said it is considering several asset liquidations for its Residential Capital LLC mortgage unit, which is trying to bolster liquidity after losing $5.3 billion in the last six quarters.
In a U.S. Securities and Exchange Commission filing, GMAC said liquidations may include a sale of interests in ResCap's mortgage securitizations, the marketing of loans secured by time-share receivables and by ResCap's British and continental Europe mortgage portfolios, whole loan sales, and the marketing of businesses unrelated to mortgage finance.
ResCap on May 5 said it would need to raise $600 million by the end of June to avoid “negative liquidity,” even if several plans to relieve its debt burden, including a $14 billion bond exchange offer, were successful.
A group led by private equity firm Cerberus Capital Management LP CBS.UL owns 51 percent of Detroit-based GMAC. It bought that stake in 2006 from General Motors Corp (GM.N: Quote, Profile, Research), which owns 49 percent. ResCap is the largest independent U.S. mortgage lender other than Countrywide Financial Corp (CFC.N: Quote, Profile, Research).
(Reporting by Jonathan Stempel; Editing by Steve Orlofsky)