The company is reviewing strategic alternatives following the completion of a financial restructuring
Ditech Holding is looking at selling the company or entering a business combination as part of efforts to create value for shareholders.
Previously known as Walter Investment Management, Ditech Holding emerged from Chapter 11 bankruptcy in February after eliminating about $800 million of outstanding corporate debt.
The company announced that it has initiated a review of potential strategic alternatives, which also include continuing as a standalone entity. The review process, which is being conducted with the assistance of financial and legal advisors, was launched in response to certain inquiries received by the Ditech board.
"Having completed our financial restructuring and as we focus on optimizing our business, our board believes that now is the right time to review the company's strategic alternatives to assess how best to drive value for our stockholders,” Ditech CEO, President, and Chairman Tom Marano said. “We will undertake a comprehensive and thorough review with the assistance of our advisors. During this review, the entire Ditech Holding team will remain focused on advancing our mission of serving our customers throughout the homeownership journey and creating value for our stockholders."
Ditech has engaged Houlihan Lokey as financial advisor and Weil Gotshal & Manges as legal counsel to assist in the review. The company said it does not intend to discuss or disclose developments with respect to the process unless and until it has entered into a definitive agreement. No timetable has been established for the completion of the strategic review.
Related stories:
Walter Investment Management emerges from Chapter 11 with a new name
Ditech Holding adds origination, tech execs
