Brea-based subprime mortgage lender ResMae Mortgage Corp. has been cleared to re-emerge from bankruptcy as a unit of hedge fund Citadel Investment Group LLC.
Delaware’s bankruptcy court on Wednesday approved ResMae’s plan of reorganization, which involves the $180 million sale of its lending operations and loans to Chicago-based Citadel.
ResMae said it expects the plan to become effective on or about June 15. The company continues to make subprime loans.
ResMae filed for bankruptcy in February and announced an agreement to sell its assets to Citadel on March 6. The hedge firm beat out an earlier bid from Credit Suisse Group for the lender’s assets.
“While the last several months have been trying for the industry as a whole, we are on course to position ResMAE as an industry leader,” said Ken Griffin, Citadel chief executive.
