Ditech signs purchase agreements with New Residential, Mortgage Assets
Ditech announced that it and certain of its subsidiaries have entered into an asset purchase agreement with New Residential and a stock and asset purchase agreement with Mortgage Assets. New Residential will acquire the assets of the company's forward mortgage servicing and originations business, Ditech Financial. Mortgage Assets will acquire the stock and assets of the company's reverse mortgage business, Reverse Mortgage Solutions. Under the terms of each of the agreements, New Residential and Mortgage Assets will serve as proposed "stalking horse bidders" in court-supervised sale processes. The proposed agreements are subject to higher or otherwise better offers. If other qualified bids are submitted, the company will conduct an auction or auctions with the agreements with New Residential and Mortgage Assets setting the floor for the auction processes. The agreements are also subject to, among other things, Bankruptcy Court approval and certain other conditions. The deadline for submitting bids is currently scheduled for July 8. A hearing on confirmation of the company's plan of reorganization and to approve the sales is currently scheduled to begin on August 7.