After a slight delay, Walter Investment Management Corp. (NYSE: WAC.BC) emerged on Friday from a prepackaged Chapter 11 restructuring plan — with a new name.
The parent company of Reverse Mortgage Solutions will be known as Ditech Holding Corporation, adopting the new ticker symbol DHCP when trading begins Monday morning.
“We are emerging from this process with a new name and an even stronger focus and ability to serve our customers,” director George M. Awad said in a statement announcing the move.
The newly christened Ditech takes its name from subsidiary Ditech Financial LLC, which avoided the bankruptcy proceeding along with RMS. Those two subsidiaries will continue operating as normal, the company said Friday.
Walter/Ditech shed $800 million of outstanding corporate debt through its recent Chapter 11 filing. Initially expected to be complete by January 31, the process required nine extra days, during which time CEO Anthony Renzi announced his intention to leave the company. A replacement has yet to be announced, though Renzi will stay on until the Fort Washington, Pa.-based firm names a successor.
RMS currently services reverse mortgages after Walter shut down its Home Equity Conversion Mortgage origination business in January 2017; that move also involved the complete closure of former Walter subsidiary Security One Lending.
“We are excited about the prospects of our core business and are confident that we are well positioned to drive profitable growth and create value for our shareholders,” Award said.
WAC stock was down $0.06, or 8.72%, in midday trading at $0.60 per share.
Written by Alex Spanko