Cases & Deals

FGIC's $1.8 billion claims against Residential Capital successfully resolved

Client(s) Financial Guaranty Insurance Company (FGIC)

Jones Day represented Financial Guarantee Insurance Company ("FGIC") in its capacity as one of the largest unsecured creditors and co-chair of the official committee of unsecured creditors of Residential Capital ("ResCap") and its affiliated debtors appointed in the chapter 11 cases. Jones Day assisted FGIC in (i) pre-bankruptcy, filing 12 Federal District Court actions against ResCap and its parent and affiliates, (ii) opposing ResCap's initially proposed chapter 11 plan that would have provided only a minimal recovery to FGIC and other unsecured creditors, (iii) litigating with ResCap and others during the bankruptcy case and ultimately negotiating and obtaining a comprehensive settlement with ResCap and its affiliates that provided FGIC with substantial recoveries on account of its allowed claims, as well as eliminating all of FGIC's future exposure to Residential Capital related claims to its insured beneficiaries.

In re Residential Capital, LLC, No. 12-12020 (Bankr. S.D.N.Y.)