Washington Mutual, Inc. Files Amended Plan of Reorganization and Disclosure Statement
21 minutes ago - Pr Newswire
Washington Mutual, Inc. (Pink Sheets: WAMUQ) ("WMI" or the "Company") today announced that it has filed with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") an Amended Plan of Reorganization (the "Plan") and Disclosure Statement (the "Disclosure Statement").
The Plan contemplates the implementation of a global settlement agreement (the "Settlement") among WMI, the Federal Deposit Insurance Corporation (the "FDIC") and JPMorgan Chase Bank, N.A. (NYSE: JPM) ("JPMC"). The terms are reflected in the Amended Plan and Disclosure Statement filed with the Bankruptcy Court.
As previously announced, the Plan, under which the Settlement will be implemented, contemplates, among other things:
WMI will establish a liquidating trust to make distributions to creditors on account of their allowed claims. In accordance with the terms of the Plan, the trust will distribute funds in excess of approximately $7 billion, including approximately $4 billion of previously disputed funds on deposit with JPMC.
It is anticipated that the reorganized WMI will undertake a rights offering pursuant to which certain creditors will receive a right to purchase newly issued shares of reorganized WMI common stock. The reorganized WMI will retain equity interests in WMI Investment Corp. and WM Mortgage Reinsurance Company.
JPMC will assume certain liabilities related to benefit plans (including the pension plan sponsored by WMI).
The various litigations involving WMI, JPMC and FDIC will be stayed or dismissed. In addition, JPMC and the FDIC (in its capacity as receiver of Washington Mutual Bank and in its corporate capacity) will withdraw claims against WMI's bankruptcy estate and the parties will exchange mutual releases.
Preferred and common equity securities previously issued by WMI will be cancelled.
The Bankruptcy Court will hold a hearing on May 19, 2010 to consider approval of the Disclosure Statement. Following approval of the Disclosure Statement, WMI will ask the Bankruptcy Court to confirm the Plan.
The Disclosure Statement filed today contains historical information regarding WMI and certain of its affiliates, a description of proposed distributions to creditors, an analysis of the Plan's feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself.
WMI's Plan and Disclosure Statement are available at www.kccllc.net/wamu. The Plan is subject to confirmation by the Court. This press release is not intended as a solicitation for a vote on the Plan.
Media Contact:
Andrew Siegel / Jed Repko
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
SOURCE Washington Mutual, Inc.
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