On February 11, 2019, Ditech Holding Corporation announced that it has entered into a Restructuring Support Agreement (the “RSA”) with certain lenders holding more than 75% of Ditech Holding’s term loans. The RSA provides for a restructuring of the Company’s debt while the Company continues to evaluate strategic alternatives. Under the RSA, the Company will pursue a recapitalization that deleverages its capital structure by extinguishing over $800 million in corporate debt, and a liquidity enhancing transaction that includes an appropriately sized working capital facility at emergence. As contemplated by the RSA, the Company simultaneously continues to consider a broad range of options, including but not limited to potential transactions such as a sale of the Company and/or a sale of all or a portion of the Company’s assets, as well as potential changes to the Company’s business model.
To facilitate this financial restructuring, Ditech Holding Corporation and certain of its subsidiaries (together the “Company”), including Ditech Financial LLC and Reverse Mortgage Solutions, Inc., have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The Company and its employees remain focused on providing homeowners with the right home financing solutions and the same high-quality service they have come to expect from us.
The Company’s case has been assigned to Judge James L. Garrity, Jr and Case No. 19-10412. The Docket can be accessed in the Dockets tab above or through the website maintained by the United States Bankruptcy Court for the Southern District of New York (www.nysb.uscourts.gov).
Additional information, including press releases and frequently asked questions, is available on the restructuring page of our website, (http://www.ditechholding.com).