Skip to main content

Ditech Goes Back Into Bankruptcy

Feb 13, 2019
One year after emerging from bankruptcy, Ditech Holding Corp. and its subsidiaries including Ditech Financial LLC and Reverse Mortgage Solutions Inc. has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code

One year after emerging from bankruptcy, Ditech Holding Corp. and its subsidiaries including Ditech Financial LLC and Reverse Mortgage Solutions Inc. has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
 
The Fort Washington, Pa.-based company entered into a restructuring support agreement with certain lenders holding more than 75 percent of the company’s term loans. Under the terms of the agreement, Ditech will pursue a recapitalization that deleverages its capital structure by extinguishing more than $800 million in corporate debt.
 
“Since we completed a recapitalization last February, we have made important progress on our strategic initiatives and our expense management efforts,” said Thomas F. Marano, President and Chief Executive Officer of Ditech. “However, as a result of market challenges that have continued to accelerate and pressure our business, we must take further action. We intend to use this process to restructure our balance sheet and help us meet our obligations. We will continue to evaluate a broad range of options with the goals of maximizing value and creating the best path forward for our business. We are pleased to have the support of our lenders in this process.”
 
Back in November, Ditech Holding was delisted from the New York Stock Exchange (NYSE).

 
About the author
Published
Feb 13, 2019
New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done

Allowing The ‘Dogs’ To Bark

More lenders need to know about 203(k) financing