News for 'WAMUQ' - (Washington Mutual Releases Confirmation of Plan of Reorganization)
Feb 22, 2012 (Close-Up Media via COMTEX) -- Washington Mutual, Inc. ("WMI" or
the "Company") announced that the United States Bankruptcy Court for the
District of Delaware (the "Court") will enter an order confirming the Company's
Seventh Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the
United States Bankruptcy Code (as has been modified, the "Plan").
According to a release on February 17, in confirming the Plan, the Court
reiterated its prior rulings in which it found fair, reasonable and in the best
interests of the Company the Second Amended and Restated Global Settlement
Agreement (as amended, modified or supplemented from time to time, the "GSA")
entered into by parties including WMI, JPMorgan Chase Bank, N.A. ("JPMC"), and
the Federal Deposit Insurance Corp. (the "FDIC"), both in its individual
capacity and as receiver for Washington Mutual Bank ("WMB").
Additionally, in confirming the Plan, the Bankruptcy Court also approved certain
modifications contained in the Plan that were agreed to during a recent
mediation (the "Mediation") by and among the Debtors, the Official Committee of
Unsecured Creditors (the "Creditors' Committee"), the Official Committee of
Equity Security Holders (the "Equity Committee"), and certain significant
parties in the Company's chapter 11 proceedings.
The Plan will become effective after the Court enters a written order reflecting
this ruling and certain Plan conditions have been satisfied.
Under the Plan, WMI will establish a liquidating trust to make distributions to
parties-in-interest on account of their allowed claims. The Company, and
subsequently the liquidating trust, will distribute funds in excess of
approximately $7 billion. The Plan, by virtue of implementing the GSA and the
modifications agreed to at the Mediation, will result in significant recoveries
for the Estate's creditors and distribution of substantially all of the stock in
the reorganized company to current equity holders.
William C. Kosturos, the Chief Restructuring Officer of Washington Mutual, Inc.
said:
"Approval of the Plan represents a monumental achievement for the Company and
its stakeholders. The Company is gratified by the Bankruptcy Court's approval
and is looking forward to implementing the Plan and initiating the distribution
of recoveries to the Company's creditors and equity holders."
The Company also announced that on February 16, it, JPMC, the Creditors'
Committee and the Equity Committee have reached an understanding with certain
holders of the Company's preferred securities regarding the ownership of certain
trust preferred securities that were issued prior to the Company filing for
bankruptcy protection in September 2008. The so-called "Trust Preferred
Consortium" and "TPS Group" (together, the "TPS Holders") claimed that they
owned the securities in question, an issue that has been contested by the
Company and JPMC during the pendency of the chapter 11 proceedings. The
Bankruptcy Court previously ruled in favor of the Company and JPMC in relation
to this matter and recent motions seeking various forms of relief have been
dismissed. Additional information regarding the terms of the settlement may be
found in a stipulation and plan modification filed with the Bankruptcy Court on
February 16.
More information:
www.kccllc.net/wamu
