Walter Investment announces bankruptcy court approval of ResCap bid Walter Investment announced that its joint bid with Ocwen Loan Servicing for the mortgage servicing and origination platform assets of Residential Capital was approved by the U.S. Bankruptcy Court for the Southern District of New York. The transaction is expected to close in the first quarter of 2013. Under the joint bidding arrangement, Walter Investment Management Corp. will acquire the Fannie Mae mortgage servicing rights portion of ResCap's servicing portfolio.
Walter Investment shares jump after reaching consensus with Birch hedge fund Shares of Walter Investment Management (WAC) jumped 11.94% to $11.16 on Tuesday after the company announced the appointment of Daniel Beltzman, co-founder of hedge fund Birch Run Capital, to its board of directors. Walter Chief Executive Officer Denmar Dixon commented that the company is "firmly committed" to enhancing shareholder value and has maintained a "longstanding and constructive dialogue with Birch Run." In connection with the appointment, the company also said Birch entered into an agreement permitting it to acquire up to 25% of Walter's common stock while also agreeing to vote its shares in support of the company's current directors. Additionally, Walter Investment said it plans to appoint a new non-management director "as soon as practicable."