Reuters reports that a hedge fund that helped craft a settlement at the heart of Washington Mutual Inc's (WAMUQ.PK) reorganization plan now opposes the deal, saying it unfairly enriches JPMorgan Chase, which bought the thrift's banking operations.
In a court filing on Wednesday, Aurelius Capital Management LP said the delay in implementing the deal has drained money from creditors, and that JPMorgan should contribute more to the settlement. Aurelius and three other hedge funds helped strike a "global settlement" last year that ended legal battles between Washington Mutual, JPMorgan and the Federal Deposit Insurance Corp.
In return for ending lawsuits, the parties agreed to divide about $10 billion of disputed assets. Washington Mutual ended up with about $7 billion, which it plans to distribute to creditors once it gets court approval to do so.
One of the disputed assets was $4 billion that Washington Mutual had on deposit at its former bank….
Read more at:
http://www.reuters.com/article/2011/06/22/washingtonmutual-hedgefund-idUSN1E75L1U620110622
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