May 13 (Reuters) – Ally Financial’s mortgage unit,
Residential Capital (ResCap), is expected to file for
bankruptcy, perhaps as early as Sunday, according to sources
familiar with the situation. [ID: nL1E8GAFIJ]
Some key events at Ally over the last few years:
2006
April 3: A consortium led by Cerberus Capital Management LP
agrees to buy a majority stake in General Motors
Acceptance Corp (GMAC) in a deal worth about $14 billion. GMAC
becomes an independent company after 87 years as a General
Motors Co subsidiary.
2008
April 1: Alvaro de Molina, a former Bank of America Corp
executive, takes over as CEO of GMAC Financial Services.
Dec. 24: GMAC gets approval to become a bank holding
company. GM and Cerberus ownership in GMAC is cut.
Dec. 29: The U.S. Treasury Department provides $5 billion
under the Troubled Asset Relief Program.
2009
May 21: Treasury makes second investment of $7.5 billion in
exchange for GMAC’s mandatorily convertible preferred stock.
May 29: Treasury acquires 35.36 percent of GMAC common stock
as repayment for an $884 million loan that the government had
earlier provided to General Motors.
Nov 16, 2009: Michael Carpenter, a former Citigroup Inc
executive, replaces de Molina as CEO.
Dec 30: Treasury enters into another series of transactions
under TARP. These include converting $3 billion worth of
preferred shares into additional common stock, investing $1.25
billion in new mandatorily convertible preferred stock, and
investing $2.54 billion in new trust preferred securities.
2010
May 10: GMAC Financial Services changes name to Ally
Financial Inc.
Sept. 24: Ally says a procedural error was found in
foreclosures in some U.S. states. The error by Ally and other
banks spur state and federal investigations into “robo-signing.”
Dec. 30: Treasury converts $5.5 billion worth of Ally
mandatorily convertible preferred stock into additional common
stock. The conversion reduces dividends by about $500 million
per year.
2011
March 7: Treasury sells Ally trust preferred securities.
Ally did not receive any proceeds from the sale.
March 31: Ally files registration statement with the U.S.
Securities and Exchange Commission for a proposed initial public
offering. The plans are shelved later in the summer amid growing
mortgage problems and volatile markets.
Dec. 30: Treasury holds 73.8 percent of Ally common stock
and about $5.9 billion in mandatorily convertible preferred
shares. Treasury is entitled to appoint six of the 11 total
members of the Ally board.
2012
Feb. 9: Ally and four other big U.S. banks accused of
abusive mortgage practices agree to a $25 billion government
settlement.
March 13: Ally fails Fed’s stress test and says it will
submit a revised capital plan in the near future.
April 13: Ally extends maturity on $2.1 billion of secured
facilities by a month to May 14.
April 17: ResCap misses interest payment due on $473 million
of unsecured debt. The company has 30 days before default.
May 13: The board of ResCap is scheduled to meet on Sunday
and a pre-arranged bankruptcy filing, where Ally has the support
of some creditors to its plan but not all, is expected to follow
soon after, sources tell Reuters.
(Compiled by Rick Rothacker and Paritosh Bansal; Editing by
Maureen Bavdek)
