Walter Investment Management Corp. pushed back the date it would emerge from bankruptcy to no earlier than Feb. 2 from the date originally planned, Jan. 31.
The holding company's
Neither of its operating subsidiaries, Ditech Financial or Reverse Mortgage Solutions, was included in the bankruptcy filing.
Once the plan is declared to be effective, Walter's board will be reconstituted to consist of three current members — George Awad, the current chairman, Daniel Beltzman and Neal Goldman — and six representatives of an ad hoc group of senior noteholders. Those are Frederick Arnold, David Ascher, Seth Bartlett, Claude LeBlanc, Thomas Marano and Thomas Miglis.
In a Securities and Exchange Commission filing on Jan. 24 detailing Walter's operations for the month of December, the company had a net loss of $134.8 million, including negative total revenue of $57,116.
Most of the net loss was attributed to equity losses of its subsidiaries, which totaled $81.6 million. The net loss before other income and expenses was $3.96 million.
Separately, on Jan. 17, Ditech received $91.4 million from New Residential Corp. in partial consideration for the sale of $11.4 billion of mortgage servicing rights that the companies agreed to last August. Walter Investment used 80% of the proceeds to repay borrowings and the rest for general corporate purposes.
Under the agreement, Ditech is subservicing the portfolio. Besides the bulk portfolio, New Residential is acquiring MSRs on a flow basis from new originations. The agreement was amended by a side letter because the bankruptcy caused defaults or breaches of covenants, representations or warranties.
Walter
