SEATTLE, Feb. 17, 2012 /PRNewswire/ -- Washington Mutual,
Inc. (Pink Sheets: WAMUQ) ("WMI" or the "Company") today announced
that the United States Bankruptcy Court for the District of
Delaware (the "Court") 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 (as has been modified, the "Plan").
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
(as amended, modified or supplemented from time to time, the "GSA")
entered into by parties including WMI, JPMorgan Chase Bank, N.A.
(NYSE: JPM) ("JPMC"), and the Federal Deposit Insurance Corporation
(the "FDIC"), both in its individual capacity and as receiver for
Washington Mutual Bank ("WMB").
Additionally, in confirming the Plan, the Bankruptcy Court also
approved certain modifications contained in the Plan that were
agreed to during a recent mediation (the "Mediation") by and among
the Debtors, the Official Committee of Unsecured Creditors (the
"Creditors' Committee"), the Official Committee of Equity Security
Holders (the "Equity Committee"), 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.
William C. Kosturos, the Chief
Restructuring Officer of Washington Mutual, Inc. said:
"Approval of the Plan represents a monumental achievement for
the Company and its stakeholders. The Company is gratified by
the Bankruptcy Court's approval and is looking forward to
implementing the Plan and initiating the distribution of recoveries
to the Company's creditors and equity holders."
The Company also announced that on February 16, 2012, it, JPMC, the Creditors'
Committee and the Equity Committee have reached an understanding
with certain holders of the Company's preferred securities
regarding the ownership of certain trust preferred securities that
were issued prior to the Company filing for bankruptcy protection
in September 2008. The so-called "Trust Preferred Consortium"
and "TPS Group" (together, the "TPS Holders") claimed that they
owned the securities in question, an issue that has been contested
by the Company and JPMC during the pendency of the chapter 11
proceedings. The Bankruptcy Court previously ruled in favor
of the Company and JPMC in relation to this matter and recent
motions seeking various forms of relief have been dismissed.
Additional information regarding the terms of the settlement may be
found in a stipulation and plan modification filed with the
Bankruptcy Court on February 16,
2012.
Details of the Court's plan confirmation decision, the Plan, the
Settlement annexed to the Plan, and related Disclosure Statement,
as well as information related to the settlement involving the TPS
Holders, are available at www.kccllc.net/wamu.
SOURCE Washington Mutual, Inc.