New Delaware Chapter 11 Filing – WMC Mortgage, LLC
WMC Mortgage, LLC, a Woodland Hills, CA-based mortgage loan originator that has been winding down operations since 2007, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 19-10879). According to the First Day Declaration, WMC ceased originating new mortgages in 2007 during the Great Recession and has since focused solely on winding up its affairs. The Declaration further explains that since 2007, WMC has paid over $1.5 billion in settlements of numerous third party claims, primarily through funding from its parent, GE Capital. The Debtor is seeking $25 million in debtor-in-possession financing to be provided by GE Capital. Epiq is the proposed claims and noticing agent. The case has been assigned to the Honorable Chief Judge Christopher S. Sontchi.
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