WMC Mortgage fixes claims for ‘most significant’ unsecured creditors

By Caroline Salls

Pittsburgh, Oct. 31 – WMC Mortgage, LLC requested court approval of a stipulation that fixes the allowed amounts of claims filed by its five most significant general unsecured creditors, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The creditors that are parties to the stipulation include HSBC, RBS, Barclays Capital Inc., Morgan Stanley and Wells Fargo Bank, NA.

WMC Mortgage said “this agreement not only clears a path to confirmation of the plan, but also eliminates the need for potentially costly and protracted litigation concerning the merits of the various claims and enables the debtor and its estate to make meaningful distributions to its creditors on or shortly after the [plan effective date].”

“In short, this motion is a victory for every constituency in this case,” the motion said.

Under the stipulation, the HSBC claim will be allowed in the amount of $17.15 million. HSBC will receive a plan distribution of $7.62 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The RBS claim will be allowed in the amount of $10.49 million. RBS will receive a plan distribution of $7.67 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The Barclays claim will be allowed in the amount of $17.85 million. Barclays will receive a plan distribution of $7.94 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The Morgan Stanley claim will be allowed in the amount of $27.42 million. Morgan Stanley will receive a plan distribution of $12.19 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The Wells Fargo claim will be allowed in an unliquidated amount. Wells Fargo will receive a plan distribution of $1.53 million within two business days of the effective date and its share of any subsequent distributions made to class four beneficiaries under the plan.

The company is requesting a Nov. 5 hearing.

WMC is a Woodland Hills, Calif.-based mortgage originator. The company filed bankruptcy on April 23, 2019 under Chapter 11 case number 19-10879.

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