When Residential Capital Corp. filed for bankruptcy protection earlier this week it left behind a trail of unsecured creditors with claims totaling well over $1 billion, according to court documents.
At the top of the list is Deutsche Bank, which is listed as unsecured creditor in six different places and is owed a combined $952 million by the nation’s fifth largest residential servicer.
Most of DB’s claims stem from senior unsecured notes that it holds on behalf of clients. The largest single claim is listed under the bank’s name for $473 million of senior notes due in 2013. The paper yields 8.5%.
Other large creditors include Bank of New York Mellon, U.S. Bank, and several bond insurers including MBIA and Ambac. Fannie Mae/Freddie Mac regulator, the Federal Housing Finance Agency, is also listed as a top creditor. But in the case of the FHFA and the bond insurers no debt amount is listed.
The filing only says that these debtors are owed money due to “contingent claim—securitization.”
