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.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.