In a statement, Walter Investment said it expects to emerge from Chapter 11 by no later than the end of January, after the conditions to the prepackaged plan are satisfied and the firm gets on track to complete its financial restructuring in the first quarter of 2018.
The firm filed for bankruptcy late last year. But its operating entities, including Ditech Financial and Reverse
Mortgage Solutions, did not follow suit and continue to operate as usual.
In connection with the court’s approval, Walter Investment has also announced a new composition of its board of directors after it emerges from Chapter 11. Three current directors – including current chairperson George Awad – will be part of the new nine-member board. The six other directors were designated by an ad hoc group of consenting senior noteholders.
"We look forward to officially welcoming the incoming members of our board, who will bring proven track records and new perspectives from both inside and outside our industry, and will play an important role in helping guide our company forward following our financial restructuring process," Awad said.
Ditech parent files for bankruptcy
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A bankruptcy court has approved Walter Investment’s prepackaged financial restructuring plan, as the mortgage loan originator seeks to reduce about $800 million in outstanding corporate debt.