Washington Mutual, Inc. Files Revised Plan of Reorganization and Disclosure Statement with Support of FDIC and JPMorgan Chase

SEATTLE--(BUSINESS WIRE)--May 22, 2010-- 

Washington Mutual, Inc. (Pink Sheets: WAMUQ.PK) ("WMI" or the "Company") today announced that it has filed with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") an Amended Plan of Reorganization (the "Plan") and Disclosure Statement (the "Disclosure Statement"). The Plan implements and incorporates the terms of a revised global settlement agreement (the "Settlement") reached among WMI, the Federal Deposit Insurance Corporation ("FDIC") and JPMorgan Chase Bank, N.A. (NYSE: JPM) ("JPMC").

The terms of Settlement were first announced on March 12, 2010. The terms of Settlement were subsequently modified as reflected in filings with the Bankruptcy Court on each of March 26, 2010 and May 16, 2010, and additional modifications are reflected in the Plan and Disclosure Statement filed today with the Bankruptcy Court. WMI noted that the Plan Disclosure Statement, and the Settlement were filed with the full support of the FDIC, JPMC and the Official Committee of Unsecured Creditors, which was appointed by the Bankruptcy Court.

WMI commented:

"WMI is pleased to have reached an agreement with the FDIC and JPMC, and we appreciate the strong support of the Creditors' Committee. WMI has worked diligently over the last 20 months to maximize the value of the bankruptcy estate and is confident that the Amended Plan will accomplish the objective of providing substantial recoveries for WMI's creditors."

As previously announced, the Plan under which the Settlement will be implemented contemplates, among other things:

   -- WMI will establish a liquidating trust to make distributions to 
      creditors on account of their allowed claims. In accordance with the 
      terms of the Plan, the trust will distribute funds in excess of 
      approximately $7 billion, including approximately $4 billion of 
      previously disputed funds on deposit with JPMC. 
 
   -- It is anticipated that the reorganized WMI will undertake a rights 
      offering pursuant to which certain creditors will receive a right to 
      purchase newly issued shares of reorganized WMI common stock. The 
      reorganized WMI will retain equity interests in WMI Investment Corp.  and 
      WM Mortgage Reinsurance Company. 
 
   -- JPMC will assume certain liabilities related to benefit plans  (including 
      the pension plan sponsored by WMI). 
 
   -- The various litigations involving WMI, JPMC and FDIC will be stayed or 
      dismissed. In addition, JPMC and the FDIC (in its capacity as receiver 
      of Washington Mutual Bank and in its corporate capacity) will withdraw 
      claims against WMI's bankruptcy estate and the parties will exchange 
      mutual releases. 
 
   -- Preferred and common equity securities previously issued by WMI will  be 
      cancelled. 

The Bankruptcy Court will hold a hearing on June 3, 2010 to consider approval of the Disclosure Statement. Following approval of the Disclosure Statement, WMI will ask the Bankruptcy Court to confirm the Plan by July 20, 2010.

WMI's Plan and Disclosure Statement, as well as the Settlement annexed to the Plan, are available at www.kccllc.net/wamu. The Plan is subject to confirmation by the Court. This press release is not intended as a solicitation for a vote on the Plan.

The Disclosure Statement filed today contains historical information regarding WMI and certain of its affiliates, a description of proposed distributions to creditors, an analysis of the Plan's feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself.

 
    CONTACT: Joele Frank, Wilkinson Brimmer Katcher 

Andrew Siegel / Jed

Repko

212-355-4449

 
    SOURCE: Washington Mutual, Inc. 
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