Washington Mutual Inc received long-sought court approval to exit bankruptcy and repay $7 billion to creditors, ending more than three years of court battles between hedge funds investors, shareholders and JPMorgan Chase & Co.. Reuters says.
The reorganization plan will distribute the money to creditors, many of which are hedge fund investors who specialize in buying securities of bankrupt companies.
The former parent of Washington Mutual bank, the largest bank to fail in U.S. history, postponed the start of a confirmation hearing on Thursday for last-minute talks to win over a group of holdout preferred shareholders.
Once that deal was clinched in the early afternoon, the bank holding company had the support of every class of creditors for its reorganization plan.
WaMu said in a statement on Friday that Judge Mary Walrath, of U.S. Bankruptcy Court in Delaware, will enter an order officially confirming the plan.
William Kosturos, the bank's chief restructuring officer, called the confirmation a "monumental achievement," saying in a statement the company is looking forward to putting the plan in place and starting to pay back its creditors. Yada..Yada..Yada..
Read all about it at http://www.reuters.com/article/2012/02/17/us-washingtonmutual-bankruptcy-confirmat-idUSTRE81G1CY20120217
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