Walter Investment Management Corp. is looking to file for bankruptcy protection by Nov. 30, after lining up $1.9 billion of debtor-in-possession warehouse financing.
The company started soliciting approvals on Nov. 6 for the prepackaged bankruptcy plan from its debtholders that were parties to restructuring support agreements.
Up to $750 million of the DIP funding can be used for Ditech Financial’s loan originations. There is $550 million available to finance servicing advances; this can be increased to $600 million if some of the current servicing advance credit lines are not available to Ditech after the bankruptcy filing. An additional $800 million will be available to the reverse mortgage business.