"There is a significant risk that we will not be able to met our debt service obligations, be unable to meet certain financial covenants in our credit facilities, and be in a negative liquidity position in June 2008," GMAC LLC's Residential Capital Corp. says in a new SEC filing.
The giant home lender, which is based in Minnesota but has its major office in Horsham, has $1.2 billion due in June, $1.8 billion in July, and $1.1 billion in November. It's trying to swap old notes for longer-term debt, borrow money from GMAC, and ease its bankers' loan requirements.
If all that works, ResCap will still need $600 million in new cash by June 30 -- which means it'll have to sell some mortgages, time-share loans, European loans and non-core businesses.
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http://www.philly.com/philly/blogs/inq-phillydeals/GMACs_ResCap_scrambles_for_cash.html
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