Washington Mutual Announces Confirmation of Plan of Reorganization
Washington Mutual, Inc. (OTC: WAMUQ) today announced that the United States Bankruptcy Court for the District of Delaware 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 .
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 entered into by parties including WMI, JPMorgan Chase Bank, N.A. (NYSE: JPM), and the Federal Deposit Insurance Corporation, both in its individual capacity and as receiver for Washington Mutual Bank.
Additionally, in confirming the Plan, the Bankruptcy Court also approved certain modifications contained in the Plan that were agreed to during a recent mediation by and among the Debtors, the Official Committee of Unsecured Creditors, the Official Committee of Equity Security Holders, 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.
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