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FYI: New Doc Notice of Hearing re: Application for an Order Pursuant to 11 U.S.C. §§ 328, 330 and 1103 and Fed. R. Bankr. P. 2014 Authorizing the Retention and Employment of Susman Godfrey LLP as Counsel to the Official Committee of Equity Security Holders of Washington Mutual, Inc., et al. Nunc Pro Tunc to April 16, 2010 [Docket No. 3681]; to be Held on May 19, 2010 at 11:30 a.m. (EST)
http://www.kccllc.net/documents/0812229/0812229100510000000000007.pdf
... rs
Excellent - you just beat me to it! LOL!
Just what the Dr. ordered ... rs
Thanks Josh. Actually Dudebug recently mentioned that BK cases may not allow for contingency remuneration! I will look into that tomorrow and thanks Dudebug!
My original post <Click Here> that brought up this topic was my response to a poster regarding the fact that Susman is not the examiner and cannot be as JMW shot that down! It appears that Susman is getting the big bucks solely because he deserves it historically! OK – I will buy that. Thanks … rs
I cannot buy that! An examiner is officially appointed by a judge and this of course did not happen! Susman is not the “official” examiner!
Chapter 11 - The Role of an Examiner: The appointment of an examiner in a chapter 11 case is rare. The role of an examiner is generally more limited than that of a trustee. The examiner is authorized to perform the investigatory functions of the trustee and is required to file a statement of any investigation conducted. If ordered to do so by the court, however, an examiner may carry out any other duties of a trustee that the court orders the debtor in possession not to perform. 11 U.S.C. § 1106. Each court has the authority to determine the duties of an examiner in each particular case. In some cases, the examiner may file a plan of reorganization, negotiate or help the parties negotiate, or review the debtor's schedules to determine whether some of the claims are improperly categorized. Sometimes, the examiner may be directed to determine if objections to any proofs of claim should be filed or whether causes of action have sufficient merit so that further legal action should be taken. The examiner may not subsequently serve as a trustee in the case. 11 U.S.C. § 321.
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html
IMO having Susman charging an hourly rate is both disturbing and puzzling! If he has a history of working on a contingency basis, then why the change here! Was he already considering bailing and the EC had to cut a deal with him to stay? I don’t want to start a war here but something is fishy! … rs
Poor Justin! He must feel like the ugly step-child at only $475 per hour! What happened to Dr Sus’ contingency manner of remuneration? I hate to say it but his concerns me! … rs
Voodoo. You never cease to amaze me how consistently you misinterpret my posts and/or reason for being here! IAM long, very pro WAMUQ, and have never flipped! It’s soooo obvious!
I have called the judge out on a few occasions in the past, I completely disagree with the $24 settlement number, and I still believe that having an examiner denied is not in our best interest! Sorry if my calling a spade a spade demeanor disgruntles you so!
Yes I do not look at everything thru rose colored glasses nor do I believe in the glass half empty/half full BS! Many posters use this here board to call them as they see them - and things have been less than ducky on many occasions! Then of course, there are the bashers and the PUMPERS! … rs
WF! My post was not directly directed towards you! I think that you realize that! I know that you are sincere in your involvement here! I respect that my friend!
My post was simply a generalization that the PPS of any stock in ones portfolio reveals green or red! Red is bad! Trading 101!
GLTY and all … rs
Windfall! The Yahoo 77B is certainly not accurate. We all know that pink sheet numbers offered by the major financial forums (well all forums) are not updated regularly! Until Solomon produces some numbers (and it better be damned quick) we will be in the dark – and in the red!
Food for thought: What if Solomon’s valuation exhibits a very favorable A>L? Will WMI, et al, then call for an independent examiner in hopes of refuting Solomon’s numbers?
I do not know much, but I know that we (the investor) are always one step behind regarding this case! This is and has been a perverse tortured and twisted chess match with JMW being the inconsistent referee/umpire!
I am in slight depression mode since yesterday but I do plan on freeing up some funds by next week and adding to my WAMUQ position if we are still at .12 or so!
In conclusion, anyone that claims that the pps currently means nothing is either independently wealthy, full of crap, or a pumper!! The old portfolio balance is a monumental psychological barometer! … rs
That is indeed a troubling comment by JMW! Obviously she knows more than we do and I would love to know what she knows … rs
I hear ya Climber! As I posted last night, it is just damn silly to see sugar coating put on what happened yesterday!
I am all for Susman – don’t anybody get me wrong. I believe he will do all that he and his firm can for equity! However, the following is what the EC (backed by the UST) wanted and were denied …
The examiner would have looked into whether WaMu — the holding company of the former Washington Mutual Bank — could bring claims relating to the bank's closure and rapid-fire sale, the committee said. Among the other topics shareholders called on an examiner to investigate were WaMu's negotiations in 2008 with JPMorgan and other potential investors; discussions between JPMorgan, the FDIC, the OTS and government agencies during the lead-up to the bank sale; and actions taken by JPMorgan that could have damaged market or government perceptions of WaMu's financial health.
For me, it is damned hard to overlook what we were denied yesterday! Hopefully my concerns will be quickly dissolved, and the Susman team alone, will more than live up to their lofty reputation! … rs
From Law360: http://www.law360.com/print_article/166512
WaMu Shareholders Lose Bid To Appoint Examiner
By Elise Czajkowski
Law360, New York (May 05, 2010) -- A judge in the Washington Mutual Inc. bankruptcy case on Wednesday batted down shareholders' request to appoint an independent examiner to look into the bank's proposed settlement with JPMorgan Chase & Co. and the Federal Deposit Insurance Corp.
Judge Mary Walrath ruled against the official committee of equity security holders' motion in the U.S. Bankruptcy Court for the District of Delaware, saying the appointment of an examiner was unnecessary.
"It is clear to me that this matter has been investigated to death,” Judge Walrath said, finding that enough relevant information was already available to the shareholders, according to Reuters.
The committee had argued in its motion, filed April 26, for the appointment of an independent examiner to probe the 2008 seizure and sale of the collapsed bank's assets to JPMorgan.
This demand for an investigation was provoked in part by WaMu's plan to release JPMorgan and the FDIC from potentially billions of dollars worth of litigation claims, the shareholders said.
At the time, the equity committee — which consists of six individual investors and private fund adviser Esopus Creek Value LLC — said “highly relevant” information had recently become available surrounding the sale of Washington Mutual Bank, including recent disclosures at an April 13 Senate permanent subcommittee on investigations hearing and by the U.S. Department of the Treasury.
The examiner would have looked into whether WaMu — the holding company of the former Washington Mutual Bank — could bring claims relating to the bank's closure and rapid-fire sale, the committee said.
Among the other topics shareholders called on an examiner to investigate were WaMu's negotiations in 2008 with JPMorgan and other potential investors; discussions between JPMorgan, the FDIC, the OTS and government agencies during the lead-up to the bank sale; and actions taken by JPMorgan that could have damaged market or government perceptions of WaMu's financial health.
On Tuesday, noteholders of the bank sought to convert WaMu's Chapter 11 case to a Chapter 7, saying millions of stakeholder dollars have been lost during the bankruptcy proceedings.
In the motion, the noteholders argued that a Chapter 7 trustee would be best able to efficiently and timely resolve issues and make distributions to stakeholders. “This case has never been, and is not now, a reorganization under any conventional meaning of the word,” the motion said, adding that since the bank is not attempting to reorganize, there was no need for competing reorganization plans under Chapter 11 when Chapter 7 provides an adequate plan.
The noteholders group, which collectively holds $2.3 billion in outstanding debt securities issued by WaMu, says the case so far has been mainly about resolving disruptions over the debtors' entitlement to certain cash assets, and claims asserted by the FDIC and others.
Ongoing moves by shareholders to elect a new board of directors would cause extended delays and a loss of creditor recoveries, a prospect that would be eliminated by the appointment of a Chapter 7 trustee, the noteholders said.
After a 10-day bank run in September 2008, the Office of Thrift Supervision closed Washington Mutual Bank and put it under the receivership of the FDIC. The FDIC almost immediately sold the bank's assets to JPMorgan for $1.9 billion.
WaMu is represented in this case by Weil Gotshal & Manges LLP and Richards Layton & Finger P.A.
The equity committee is represented by Ashby & Geddes PA and Susman Godfrey LLP.
The noteholders group is represented by Fox Rothschild LLP, White & Case LLP and Kasowitz Benson Torres & Friedman LLP.
JPMorgan Chase & Co. is represented by Landis Rath & Cobb LLP and Sullivan & Cromwell LLP.
The case is In re: Washington Mutual Inc. et al., case number 08-12229, in the U.S. Bankruptcy Court for the District of Delaware.
--Additional reporting by Elaine Meyer
... rs
Day-traders have been having a ball with this the last few weeks! UP on good news AH – a little lower at Pre, and then sell off at market open! Most perturbing!!
Still long and up >100% but this is Horse Crap! IMO, the MM’s are perversely working this! Big surprise! … rs
Re: Stinko de Mayo! My head is still spinning! Where do I start … OK, we were all praying for an examiner for the last week as said examiner would be the “nail in the coffin” in this case and guarantee equity a most favorable resolve! The examiner is denied and a few minutes later, posters are rejoicing as this is a blessing in disguise and touting JMW as being a smart cookie in leaving this in the hands of Susman alone! The JMW accolades continued as she wants this to unfurl without further cost (of an examiner) and within a reasonable period of time as apposed to another 150 days! Jeez …
After reading many more opinions from the board since shortly after hearing’s end, may I suggest that we all sit back and admit this was a defeat! We wanted an examiner, and were shot down - period! Sugar coating today’s ruling is – well, sugar coating today’s ruling! The fact alone that JMW ruled from the bench is concern enough!
So after today, we are in the same boat as yesterday as far as the EC’s strategy is concerned except JMW sternly scolded the offending parties involved to happily share the millions of docs with our EC! Wow – what a novel and cutting-edge idea! I wish I had thought of that! Oh – scratch that, we are in the same boat as yesterday but currently sitting at .14!
Now all of the above said, do I wish that I would have had the ready funds to buy more at .12 today? YES! I still believe that commons will be rewarded!
I guess I am saying – let’s NOT put earrings on a pig! We lost today! Accept defeat! Lets see if Susman is all that he is cracked up to be! My money is on it! … rs
JHD (L)! With the exception of a very few, we are all family here! Although lately, I have avoided church religiously, I have always followed the golden rule(s)!
I will be praying for your father tonight! Every once in a while, life throws us seemingly indomitable curveballs! Vern sounds like one tough cookie and has my respect and admiration! I have respect for you in your honesty and integrity as well!
Take care my friend and I truly mean that! Many e-friends are BS but I, over the many months, consider you a true friend!
God bless … rs
UZ et al! It’s been a hell of a day (at least doc wise)! Great Caesars Ghost!!! Many of these filings (objections) were expected! I have come nowhere close to reading them all yet as I prefer to post them (as a service to the board) before I have analyzed them myself! BTW: As most of you know, my legal knowledge is akin to Rosen’s respect for shareholders! LOL!
I have received too many responses throughout the day to respond to them all but I appreciate the interaction!
I will try to catch up later … rs
Yet more docs w/second amended agenda PDF #64 …
http://www.kccllc.net/documents/0812229/0812229100504000000000066.pdf
http://www.kccllc.net/documents/0812229/0812229100504000000000064.pdf
… rs
New docs rolling in like oranges ...
http://www.kccllc.net/documents/0812229/0812229100504000000000063.pdf
For all ... http://www.kccllc.net/Docket/SearchResults.asp
... rs
WaMu, creditors fight shareholders over examiner:
http://www.reuters.com/article/idUSTRE6435YU20100504
Shareholders last week asked the bankruptcy court overseeing Washington Mutual's Chapter 11 case to appoint an examiner to investigate the failure of the company's lending business and the value of legal claims stemming from it.
Their request was accompanied by documents released by a congressional panel that held hearings about the collapse of Washington Mutual's lending business, which was the biggest bank failure in U.S. history.
The company called the examiner request a "desperate attempt by the equity committee to throw any and every allegation against the wall in the hope that something will stick," according to its filing on Tuesday.
JPMorgan Chase & Co, which bought Washington Mutual's failed lending operations from the Federal Deposit Insurance Corp after they were seized, said everything surrounding the bank collapse had already been parsed.
"Any investigation by an examiner would be wholly duplicative of the work done by the debtors, the official committee of unsecured creditors and other parties of interest over the past 19 months," said a filing by JPMorgan.
Washington Mutual Bank was seized and sold to JPMorgan for $1.9 billion in September 2008, at the height of the financial panic.
The company proposed a reorganization plan earlier this year that leaves nothing for shareholders and distributes around $7 billion to creditors.
Shareholders have estimated the company may have assets worth up to $20 billion when factoring in potential legal claims.
However, the company has proposed completely releasing JPMorgan and the FDIC from any claims.
Shareholders' request for an examiner was supported by the U.S. Trustee, a government official who oversees bankruptcy cases, who said the process would be served by an impartial review of the claims.
A hearing on the matter is scheduled for Wednesday at 10:30 a.m. EDT.
Shares of Washington Mutual closed down 1.8 percent at 16.3 cents in pink sheet trading on Tuesday.
The case is In re Washington Mutual Inc, U.S. Bankruptcy Court, District of Delaware (Wilmington), No. 08-12229.
(Reporting by Tom Hals, editing by Matthew Lewis)
... rs
Hello Oil my friend! I just have a gut feeling that an examiner will be approved manana (a little cinco de mayo lingo there)!
As to the aforementioned topic of the board being quiet lately, many here I reckon are plum talked out! Many settlement theories over the many months have been proffered, argued, and ultimately and obviously proved wrong! Folks have learned to take this one step at a time and speculate a tad less than before.
• We have an EC. So what do we do? We wait and see what they do!
• We have Susman. So what do we do? We wait and see what he does!
• We have Solomon. So what do we do? There is some rightful speculation that Solomon may or may not have full access to all books required. We wait and see what they do!
• We have the BOD vote. So what do we do? We wait for the voting criteria, date, etc, and then VOTE!
Only meaty court docs, reputable news articles, and of course omnibus hearing minutiae itself sparks true interest and excitement here! Of course, the occasional basher(s) will always get folks riled up – LOL!
It looks like I have gone on way too long regarding speculator777’s post of “Sometimes I interpret a boards silence as uncertainty or lack of confidence”!
Take care … rs
Climber. I think you misinterpreted at least part of my post as I DO with a great degree of certainty believe an examiner will be granted on Wednesday!
Could it prolong the case? Yes – but only if JPM, FDIC, and the OTS wish to have their filthy stinkin’ innards examined with a nuclear anal probe!
I honest to God believe that the admittance of an examiner will commence real negotiations! REAL NEGOTIOTAIONS! The OTS and FDIC’s inadequacies are already on record via the PSI hearings! It is in our two pals, (JD and Rosen’s) court, so-to-speak, to decide how much probing is acceptable! They may cry Uncle sooner than we think … rs
IMO, if the examiner is not a slam-dunk, it is at least an easy lay-up! Hell, I don’t even like hockey! But seriously, if an examiner is stunningly not approved, we still have Susman and Solomon! Susman has already made some nice inroads here even as he gets up to speed on the entire fiasco! Solomon (we assume) has been crunching the numbers for a while! For those not familiar with financial audits, results can take months before being released for a medium to large company alone! With an entity as big as WaMu, well - it may take a very long time to complete the valuation! … rs
RE: Pres. Obama Having Jamie Dimon Over For Dinner Tonight To Chat Financial Reform
Read more: http://www.businessinsider.com/henry-blodget-pres-obama-having-jamie-dimon-over-for-dinner-tonight-to-chat-financial-reform-2010-5#ixzz0mucpC26x
So how do the Obama’s like a Jamie Dimon – roasted or fried? … rs
FYI: Many New Docs added at KCCLLC: http://www.kccllc.net/Docket/SearchResults.asp
... rs
Agreed! IMHO a run-up prior to a hearing will happen here no longer! Day-traders, swing-traders, and speculators (not familiar with the entire case history) have played this enough to know that at best, even favorably hearing outcomes fill up just a few more pieces of the puzzle – a puzzle that seemingly does not even have a finite number of pieces!
• We currently have a biggie in Susman!
• We await Solomon’s valuation!
• It is a good bet that an examiner will be OK’d on Wednesday!
That said, with the above positives that WE daily followers are well aware of, fence-sitters still see this languishing <.17 and more importantly, with NO volume lately! I would hazard to guess as well that many longs here are no longer adding on the slight dips as after all, money doesn’t grow on trees! … rs
LOL Hammer! I know what you mean! Susman is a brute, an ogre of a barrister! An animal! Good night my friend and all. .. rs
Your provided link is broken Buddha! Regardless, the fact that the POR is a POS has been well established for 30+ days! With no financials proffered in the POR, it was basically akin to filing used toilet paper! JMW has her own TP (probably Charmin) and was not impressed by Rosen’s submission!
Although we currently languish near .17, Mr. Susman has a master plan! This guy is like Thor or Iron Man (in the parlance of our times)! Susman is a monster to be reckoned with! I reckon he will continue to kick arse with Brian Rosen being the main target! … rs
Initially, it looked to me to be some class-action type of filing until I got down to The Honorable Brendan Linehan Shannon part - LOL! Most likely a clerical error but stranger things have happened - we shall see … rs
Man the volume is just atrocious today! Below is old news but still an entertaining read from the AP …
WaMu shareholders can pursue annual meeting
THE ASSOCIATED PRESS • April 21, 2010
WILMINGTON, DEL. — A bankruptcy judge on Wednesday cleared the way for Washington Mutual Inc. shareholders to take legal action to force the company to hold a long overdue annual meeting.
Ruling on a motion filed in Delaware by Washington Mutual's official committee of equity security holders, Judge Mary Walrath said the automatic halt to litigation that applies to companies in bankruptcy cannot bar shareholders from exercising their corporate governance rights.
Rejecting the company's arguments, Walrath said it is "well-settled law" that shareholders can hold meetings to elect new directors despite a company being in bankruptcy.
The shareholders want a judge in Washington state to order WMI to hold an annual meeting so that they can elect new board members. The company hasn't held a shareholders meeting since April 2008, five months before it filed for bankruptcy protection after the largest bank failure in U.S. history.
The shareholders argue that the failure to hold a meeting violates both Washington law and the company's bylaws. They complain that the same officials responsible for WaMu's failure are still controlling the company and making decisions regarding its bankruptcy case.
"They simply want to exercise their corporate governance rights," said Stephen Susman, an attorney for the equity holders committee.
The equity committee alleges that the current WMI board is resisting the election of new directors who would protect shareholder interests in the company's reorganization plan and the related settlement of a $4 billion dispute with JPMorgan Chase & Co. and the Federal Deposit Insurance Corp.
Washington Mutual attorney Brian Rosen argued that the shareholders, who stand to get nothing under WMI's Chapter 11 reorganization, were abusing the bankruptcy process and were trying to sabotage the reorganization plan filed last month, roughly a year and a half after WMI sought bankruptcy protection.
"It is clear that the equity committee has its own scuttling agenda," Rosen said. "They want to dismantle the 19 months of work ... and to rebuild the wheel."
(2 of 2)
Walrath said the fact that shareholders are fighting for a better deal or more bargaining power doesn't amount to abuse of the bankruptcy process.
"I think it's clear from the case law that you need more than just the fact that the shareholders disagree with what the debtors have done," the judge said, noting that the shareholders had taken action to force an annual meeting before WMI filed its reorganization plan. "I just don't find any basis for abuse here," she concluded.
Susman said the shareholders would go to court in Washington on Thursday asking a judge there to order the convening of an annual meeting.
"It's our hope that we can get this done as soon as possible," said equity committee chairman Michael Willingham, who testified that he bought more than a million shares of WMI last year after its bankruptcy filing.
Susman said the proposed settlement with JPMorgan and the FDIC remains of great concern to equity holders, who plan to seek the appointment of an independent examiner in the bankruptcy case.
The FDIC seized Washington Mutual's flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion. The sale resulted in the two banking companies and the government agency trading lawsuits over roughly $4 billion in disputed deposit accounts.
In a proposed settlement of the competing lawsuits, JPMorgan has agreed to turn over the $4 billion in disputed deposit accounts to Washington Mutual in return for 70 percent of the tax refunds expected from WaMu's prior operating losses, which are valued at about $3 billion.
WaMu would get about 40 percent of the tax refunds resulting from a second round of operating losses, which are valued at about $2.6 billion. The remaining 60 percent would go to the FDIC. "The legal claims of the debtors that would be released by the settlement are among the most valuable assets of the debtors," Susman said. "This is not the time to shoo away the owners of the company."
Rosen, the WMI attorney, said the equity holders don't like the settlement because they believe "there is more money to be milked from JPMorgan Chase."
http://www.app.com/article/20100421/BUSINESS/100421085/WaMu-shareholders-can-pursue-annual-meeting
… rs
Well before the EC – one! LOL! Now that Rosen is finally overmatched by Susman, it will take the strength of 100 Rosen’s plus two! Luckily, there are NOT that many Rosen’s around! At least not involved in THIS case! :) … rs
FYI: Summary of First Monthly Application of Ashby & Geddes, P.A. as Delaware Counsel to the Official Committee of Equity Security Holders of Washington Mutual, Inc., et al., for Allowance of Compensation for Services Rendered and Reimbursement of Expenses Incurred for the Period of March 4, 2010 Through March 31, 2010
http://www.kccllc.net/documents/0812229/0812229100429000000000006.pdf
… rs
I myslf tipe in wurd furst - scratch that!
I myself 90% of the time type in Word initially as well! It simply makes for an easier to read post – not that I’m saying my posts are worth anything! :)
It appears that the author is an IHuber as he included XOM’s pic (unless said pic has filtered thru the net already)! I thought that was a nice touch as it portrays that shareholders are a little miffed at the offending parties involved! … rs
Thank you Diane! You are too sweet! If we are not honest with each other on this board and life in general, what do we have? I call em’ as I see em’!
Right now, I am seeing WAMUQ looking much better than a few weeks ago. The pps of course does not reflect this but the chess match has turned significantly in our favor!
Going to bed soon. All the best to you Diane and all! … rs