Mr Cooper Group Inc (COOP)

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Do not know if this was linked yet this morning but …

WaMu, General Growth, Hawkeye, Abitibi: Bankruptcy (Update1)
June 04, 2010, 9:10 AM EDT

(This report contains items about companies both in bankruptcy and not in bankruptcy. Adds U.S. Concrete and Fulton Homes in Updates; Alico Commons in New Filings; and Trump Entertainment, Citadel, and Lehman in Briefly Noted.) By Bill Rochelle

June 4 (Bloomberg) -- Washington Mutual Inc., the holding company for the biggest U.S. bank to fail, will have to wait for approval of a disclosure statement until at least June 17.

The delay resulted from shareholders’ opposition to the so- called global settlement grafted onto WaMu’s proposed Chapter 11 plan. The equity committee sought documents from WaMu reflecting the company’s opinion of the strength of the claims being given up in the settlement. WaMu refused to turn over documents, claiming they are protected by the attorney-client privilege or were attorneys’ work products that can’t be given to an outsider.
U.S. Bankruptcy Judge Mary Walrath observed at yesterday’s hearing that standing behind the privileges would delay her ability to send the explanatory disclosure statement to creditors. She said that WaMu ultimately must explain the company’s evaluations of the claims in establishing why she should sanction the settlement.

The judge told the parties to work out a schedule for providing documents and report to her at a June 17 hearing. She also said that WaMu’s reluctance to turn over documents was leading her to rethink her denial of a motion by shareholders for the appointment of an examiner to investigate the merits of the settlement. She invited the shareholders to file another motion for an examiner.

The equity committee’s lawyer said the new motion would be filed. To read Bloomberg coverage of yesterday’s hearing, click here.
Opposition isn’t from shareholders alone. Holders of notes issued by the bank subsidiary filed papers urging the bankruptcy judge to appoint a trustee in either Chapter 7 or Chapter 11. Their motion is on the calendar for June 17. The bank bondholders also oppose the global settlement.

WaMu, the Federal Deposit Insurance Corp., and JPMorgan Chase & Co. signed a definitive settlement that can be implemented with confirmation of a Chapter 11 plan. To read about the global settlement, click here for the May 24 Bloomberg bankruptcy report. The settlement and plan confirmation would enable WaMu to distribute more than $7 billion to creditors. Click here to read the May 18 Bloomberg bankruptcy report for a summary of WaMu’s plan.

Shareholders and bank bondholders say WaMu and the FDIC are giving up too cheaply and should continue lawsuits with JPMorgan.
The WaMu holding company filed under Chapter 11 in September 2008, one day after the bank subsidiary was taken over. The bank was the sixth-largest depository and credit-card issuer in the U.S. The holding company filed formal lists of assets and debt showing property with a total value of $4.49 billion against liabilities of $7.83 billion.

The holding company Chapter 11 case is Washington Mutual Inc., 08-12229, U.S. Bankruptcy Court, District of Delaware (Wilmington).

http://www.businessweek.com/news/2010-06-04/wamu-general-growth-hawkeye-abitibi-bankruptcy-update1-.html

… rs