Mr Cooper Group Inc (COOP)

[Donald Hollinger]

Does this guy know what he is talking about?


When Washington Mutual first declared bankruptcy, the Democrats were popular, Jay Leno was getting ready to call time on his career as host of "The Tonight Show," and Tiger Woods was the most respected athlete in the world.

More than two years later, WaMu's bankruptcy finally looks to be winding down (I know we've said that before) with Monday's news that Delaware bankruptcy Judge Mary F. Walrath said she would sign off on an order approving a disclosure statement filed in connection with WaMu's proposed reorganization plan. The plan, which would liquidate $7 billion with the bulk coming from a $6 billion settlement between WaMu, its owner JPMorgan Chase, and the FDIC among various creditors, is set to be voted on by WaMu's creditors on Nov. 15 -- two weeks after the independent examiner's report is due. In a statement, Washington Mutual said that the settlement "will result in significant recoveries for the estate's stakeholders and is in the best interests of the estate." Quinn Emanuel Urquhart & Sullivan's Susheel Kirpalani, who represents WaMu, did not return a call for comment.

Shareholders in WaMu had asked Walrath to put off her decision until after the report came out, but were unsuccessful. Nevertheless, shareholders' attorney Justin Nelson of Susman Godfrey was unfazed. "We see this as a preliminary step as we wait for what the examiner's report says," Nelson told us. In Does this guy know what he is writting about?





July, Nelson had requested an examiner to look into whether company assets and potential legal claims against JPMorgan were undervalued, and shareholders were being improperly cut out of any recovery. "We've always wanted an independent investigation into the facts, and we look forward to reading the report."

Tom Lauria of White & Case, who represents the creditors, isn't worried about any last-minute bombshells in the report that could derail the adoption of the plan by the creditors. "The report is not going to change how everyone is going to vote," Lauria told Bloomberg.

Walrath will then take the vote into account in deciding whether to formally approve the plan at a hearing scheduled for Dec. 1. In other words, it could be a very merry Christmas for those of you who can't wait to see this long-running saga come to its conclusion.



This article first appeared on The Am Law Daily blog on AmericanLawyer.com
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