According to FinAlternatives, four hedge funds settled insider-trading allegations against them in the Washington Mutual bankruptcy, moving the former bank a step closer to getting out of bankruptcy protection.
WaMu's shareholders have settled their grievances with the hedge fund creditors, who have agreed to accept $160 million in debt and preferred equity in the reorganized company, instead of common stock. In addition, the "significant creditors" have also agreed to lend the firm, which sold its banking operations to JPMorgan Chase in 2008, as much as $100 million. In exchange for dropping their insider-trading probe, WaMu's shareholders will get common stock in the reorganized company and a litigation trust that will sue to raise money….
Read More at: http://www.finalternatives.com/node/16778
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