Residential Capital is in a long-running post-confirmation wind-down, with the ResCap Liquidating Trust still administering remaining assets, costs, litigation fallout, and distributions more than a decade after plan confirmation. The latest quarterly report says the Trust held $53.438 million of cash, $44.488 million of net assets in liquidation, and $8.950 million of estimated remaining operating costs as of March 31, 2026, while projecting completion of the wind-down in 2026 through the Forty-Sixth Post-Confirmation Status ReportDkt. 10799.
The case began on May 14, 2012, when Residential Capital and affiliated mortgage businesses entered chapter 11 after operating as a large mortgage-servicing and origination platform under Ally Financial, with substantial secured and unsecured debt layered across servicing assets, mortgage loans, notes, MSRs, and advance receivables. The first-day declaration described roughly $5.48 billion of funded obligations, including a $747 million Ally senior secured facility, a $380 million Ally secured line of credit, $2.1 billion of 9.625% junior secured notes, and multiple unsecured note series, framing the filing around a highly levered mortgage platform with complex asset-backed and servicing-related financing arrangements in the Whitlinger First Day AffidavitDkt. 6.
The restructuring path has now moved well past operating stabilization and into trust administration. A plan was confirmed on December 11, 2013, and the current docket activity is centered on post-confirmation reporting and notice rather than sale or financing litigation. The Trust’s most recent report also records a March 24, 2026 denial by the Second Circuit of rehearing in insurance litigation and a fifteenth cash distribution declared April 16, 2026 for $40.0 million, or $0.4047 per unit, scheduled for payment on May 12, 2026, under the . The follow-on claims agent filing confirms service of that status report on major financial institutions, government agencies, the U.S. Trustee, and other stakeholders through the .