WaMu holding company files amended bankruptcy plan
I’ve seen few details yet but a story is cirtulating about Washington Mutual’s holding company filing an amended bankruptcy plan:
DOVER, Del. — Bank holding company Washington Mutual Inc. has reached an agreement with the Federal Deposit Insurance Corporation that puts WaMu closer to exiting Chapter 11 bankruptcy.
The revised reorganization plan filed Sunday in Delaware bankruptcy court is based on a settlement involving the bank holding company, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, which filed lawsuits against one another after the FDIC seized WaMu’s flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion.
The FDIC objected to the initial settlement plan, resulting in negotiations that led to the amended plan.
In addition distributing some $7 billion in funds among various parties as part of the settlement, the plan allows certain creditors to buy new shares in the reorganized company. Holders of existing shares would receive nothing.
A hearing in the case is scheduled for Tuesday.
WaMu failure | admin May 18, 2010
