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Ditech Holding Corporation Signs Purchase Agreements with New Residential Investment Corp. and Mortgage Assets Management, LLC

Ditech Holding Corporation (“Ditech Holding” or, together with its subsidiaries, the “Company”) (OTC Pink: DHCP) today announced that it and certain of its subsidiaries have entered into an asset purchase agreement with New Residential Investment Corp. (“New Residential”) and a stock and asset purchase agreement with Mortgage Assets Management, LLC and its affiliate (collectively, “Mortgage Assets”) pursuant to which, if consummated:

  • New Residential will acquire the assets of the Company’s forward mortgage servicing and originations business, Ditech Financial LLC.
  • Mortgage Assets will acquire the stock and assets of the Company’s reverse mortgage business, Reverse Mortgage Solutions, Inc.

Under the terms of each of the agreements, New Residential and Mortgage Assets will serve as proposed “stalking horse bidders” in court-supervised sale processes. Accordingly, the agreements are each subject to higher or otherwise better offers, among other conditions.

“We believe the agreements with New Residential and Mortgage Assets position us to maximize value and create the best path forward for our stakeholders, including homeowners and customers,” said Thomas F. Marano, Chairman of the Board and Chief Executive Officer of Ditech Holding.

Mr. Marano continued, “I would like to thank all of our employees for their continued hard work and dedication. As a result of their efforts, we have continued serving our customers throughout our court-supervised process.”

The proposed agreements are subject to higher or otherwise better offers. If other qualified bids are submitted, the Company will conduct an auction or auctions with the agreements with New Residential and Mortgage Assets setting the floor for the auction processes. The agreements are also subject to, among other things, Bankruptcy Court approval and certain other conditions.

The deadline for submitting bids is currently scheduled for July 8, 2019. If qualified bids are submitted, an auction or auctions would be scheduled to be held beginning at 10:00 a.m. (ET) on July 11, 2019. A hearing on confirmation of the Company’s plan of reorganization and to approve the sales is currently scheduled to begin on August 7, 2019.

Additional information can be found on the restructuring page of Ditech Holding’s website, http://ditechholding.com, or by calling the Company’s Restructuring Hotline, toll-free at 1-866-486-4809. Customer information is available at https://dm.epiq11.com/ditechcustomer. In addition, court filings and other documents related to the court proceedings, including copies of the agreements, once available, are available on a separate website administered by the Company’s claims agent, Epiq, at https://dm.epiq11.com/Ditech.

Advisors

Weil, Gotshal & Manges LLP is acting as legal counsel, Houlihan Lokey is acting as investment banking debt restructuring advisor and AlixPartners LLP is acting as financial advisor to the Company in connection with the financial restructuring.

Sidley Austin LLP is acting as legal counsel and Moelis & Company LLC is acting as financial advisor to New Residential in connection with the acquisition of the Company’s forward servicing and originations business.

Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel and Barclays Capital Inc. is acting as financial advisor to Mortgage Assets in connection with the agreement.

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