(Reuters) - Warren Buffett’s Berkshire Hathaway Inc (BRKa.N) won a bankruptcy auction for a Residential Capital LLC loan portfolio with a $1.5 billion bid, ResCap said on Thursday.
Berkshire had been the opening bidder for the loans at $1.44 billion. A second bidder participated in the auction, a source familiar with the situation said, but details weren’t available. The sale needs bankruptcy court approval.
A Berkshire Hathaway representative was not immediately available.
ResCap, the mortgage lending unit of Ally Financial Inc, filed for bankruptcy in May. It will use proceeds of the auction to repay creditors, including its parent.
Reporting By Rick Rothacker in Charlotte, N.C.