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Judge approves ResCap's plan to end its bankruptcy

Wednesday, 11 Dec 2013 | 11:04 AM ET

NEW YORK, Dec 11 (Reuters) - A court on Wednesday approved Residential Capital's plan to end its 19-month bankruptcy and begin paying back creditors, putting the mortgage lender on a path to exit Chapter 11 by year's end.

Judge Martin Glenn rubber-stamped the plan, which is founded on a $2.1 billion settlement contribution from ResCap's former parent, Ally Financial, at a hearing in U.S. Bankruptcy Court in Manhattan.

The approval comes about a week after the company struck a deal to resolve objections to the plan from a key group of bondholders.