The company said the problems–including over-generous grants of legal immunity–have been fixed, and the plan should be approved as a reasonable way out of the legal wreckage left behind when it lost Washington Mutual Bank, or WaMu, to a regulatory seizure.
Shareholders and others being left out in the cold under the Chapter 11 plan are mustering their final arguments in a last-ditch effort to defeat it. They said Washington Mutual settled valuable claims related to WaMu for just enough to pay creditors, leaving billions of dollars of damages on the table.
Cash has accumulated in the Chapter 11 coffers as tax refunds stacked up, thanks to a new law that allowed WaMu’s former parent to make the most of its losses on the thrift. In the meantime, WaMu’s former parent hammered out a settlement with regulators and WaMu’s new owner, J.P. Morgan Chase.
Read the rest of the article at the Wall Street Journal
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