investorshub.advfn.com/boards/read_msg.aspx?message_id=58545533
Zitat:
WaMu bankruptcy plan ruling seen imminent 01/07 01:58 PM
* Ruling to decide plan to divide $10 bln of assets
* Deal ends legal disputes and bankruptcy
* Appeals expected
By Tom Hals
WILMINGTON, Del., Jan 7 (Reuters) - A judge is expected to rule soon, possibly by later Friday, on a plan to end Washington Mutual Inc's (WAMUQ:$0.0571,$-0.0029,-4.83%) bankruptcy, which stems from the biggest bank failure in U.S. history.
Judge Mary Walrath of Delaware's bankruptcy court told lawyers at a Thursday hearing that she was preparing to issue her opinion on Friday, said Washington Mutual (WAMUQ:$0.0571,$-0.0029,-4.83%) attorney Brian Rosen of law firm Weil, Gotshal & Manges LLP. The judge has given no indication of whether or not she would approve the pact.
Walrath oversaw a week of hearings in December on the company's deal to divide $10 billion of disputed assets as well as the ownership of $4 billion of disputed securities.
The company filed for Chapter 11 in September 2008, the day after regulators seized its WaMu savings and loan at the height of a financial panic. The Seattle-based bank was immediately sold by the Federal Deposit Insurance Corp to JPMorgan (JPM:$43.12,00$-1.3600,-3.06%) for $1.88 billion.
The 2008 bank seizure and sale set off 18 months of legal battles over ownership of various assets, mostly cash and tax refunds.
If approved, the deal at the heart of the company's reorganization would provide the bulk of the more than $7 billion that Washington Mutual (WAMUQ:$0.0571,$-0.0029,-4.83%) will use to repay the hedge funds that hold its notes and bonds.
The FDIC would receive about $800 million in tax refunds from the deal and JPMorgan (JPM:$43.12,00$-1.3600,-3.06%) would receive about $2.4 billion.
Washington Mutual (WAMUQ:$0.0571,$-0.0029,-4.83%) , JP Morgan and the FDIC initially proposed the settlement in March. It provides Washington Mutual (WAMUQ:$0.0571,$-0.0029,-4.83%) with just enough money to pay the holders of its bonds and notes roughly in full, but leaves virtually nothing for shareholders.
Shareholders, who are generally paid last in a bankruptcy, and holders of disputed securities battled against the deal.
Shareholders argued that the company could be worth as much as $33 billion if it pursued its legal claims against JPMorgan (JPM:$43.12,00$-1.3600,-3.06%) and the FDIC, rather than settle them.
If she rejects the plan, Walrath could ask for more information or hold additional hearings.
Regardless of her ruling, the decision is likely to be appealed.
Washington Mutual (WAMUQ:$0.0571,$-0.0029,-4.83%) shares were down 3.5 percent at 5.8 cents in afternoon pink sheet trading.
The case is In re Washington Mutual Inc (WAMUQ:$0.0571,$-0.0029,-4.83%) , U.S. Bankruptcy Court, District of Delaware, No. 08-12229. (Writing by Tom Hals, editing by Dave Zimmerman)
Get more news on:SYMBOLS: WAMUQ, JPMNEWS TYPE: BondsSECTORS: Commercial Banks, Capital Markets, Financials
Zitatende
--------------------------------------------------
Zitat Lebosco:
Well I guess we ARE in fact waiting for a ruling on the POR...Man I was excited to have a nice fun and relaxing weekend...now I may be somewhere standing in a corner in utter silence!
--------------------------------------------------
MfG.L:)
"Mit der Dummheit kämpfen Götter selbst vergebens"