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Ditech owner in cash crunch

May 5th, 2008, 6:24 pm · 6 Comments · posted by Mathew Padilla, Reporter

Residential Capital LLC, the unit of GMAC that includes Costa Mesa-based Ditech.com, said in a filing that it is highly leveraged relative to its cash flow and could be upside down financially by June.

“There is a significant risk that we will not be able to meet our debt service obligations,” the company said Monday.

It’s seeking to restructure debt and raise $600 million by June. If not it might have to sell assets, possibly including “businesses and platforms that are unrelated to our core mortgage finance business.” Ditech.com is not mentioned in the filing.

Bloomberg reports the company is offering as little as 80 cents on the dollar to exchange or buy back $14 billion of bonds to extend maturities and stave off bankruptcy.

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Posted in: Company Watch • Ditech • |

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6 Responses to “Ditech owner in cash crunch”

  1. Troy Says:
    May 6th, 2008 at 12:27 am

    I’m just thankful those annoying Ditech.com commercials will be going off the air! Good riddance to old rubbish.

  2. Liar Loan Says:
    May 6th, 2008 at 9:34 am

    Amen to that.

  3. David Says:
    May 6th, 2008 at 10:14 am

    I just lost ANOTHER non-performing subprime loan to Ditech!

  4. Matt Padilla, Register Reporter and Blogger Says:
    May 6th, 2008 at 11:08 am

    I emailed the media guy for GMAC, owner of ResCap and Ditech.com, yesterday and just heard back today. He said the company could not comment on whether Ditech is up for sale.

  5. Buy Houses Now! Says:
    May 6th, 2008 at 12:48 pm

    Lol that fat banker guy in the Ditech commercials is probably glad he lost those loans to Ditech now.

  6. shiny Says:
    May 6th, 2008 at 2:56 pm

    I used to work in the Ditech building back in the late 90’s: there were all manner of women there that either had loose morals or didn’t care if they appeared to have loose morals. I wonder if it is still that way. I remember riding the elevator while the one Ditech girl was regaling her co-workers with how she was getting it and loving it. It was rather unprofessional but it did perk my interest. Unfortunately, I had to get off on a lower floor so I didn’t get to hear if her story had a glorious culmination.
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