|
Judge Sets Nov. 1 Trial Date for $4 Billion Investor Claims in WaMu Chapter 11
Posted by Dimitra Kessenides
By Alison Frankel, The Am Law Litigation Daily
Delaware federal bankruptcy court judge Mary Walrath is going to have a doozy of a fall. On September 7, she's set to receive a report from therecently-appointed examiner in the Washington Mutual Inc. Chapter 11, who has a broad mandate to investigate the circumstances of WMI's September 2008 demise. On the same day, WMI is scheduled to file its response to an adversary proceeding brought by holders of $1 billion in WMI trust preferred securities, who assert that WMI and JPMorgan Chase wrongfully appropriated $4 billion for WMI's estate.
At a hearing in Wilmington on Tuesday, Judge Walrath said trial in the adversary case would begin on November 1, as the first order of business in the confirmation hearing on WMI's reorganization plan. And according to the trust preferred investors' counsel at Brown Rudnick, the outcome of that proceeding may derail the rest of the confirmation hearing.
The trust preferred securities holders filed their 97-page complaintlast month, naming WMI, several WMI trusts, and JPMorgan Chase as defendants. (JPMorgan, you'll recall, acquired WMI's subsidiary, Washington Mutual Bank, in 2008, after the Federal Depositors Insurance Corporation took over WaMu Bank.) As Zach Lowe at The Am Law Daily explained at the time, Brown Rudnick's clients allege that WMI, the federal government, and JPMorgan colluded to deceive and then deprive them of their $1 billion investment in preferred trust securites. They bought the securities, they allege, with the understanding that if WaMu Bank failed, the preferred trust shares would be converted into WMI preferred stock. But instead, they allege, WMI attempted to transfer all of the preferred trust securities--totaling $4 billion--to JPMorgan when it acquired WaMu Bank.
The $4 billion transfer is cited in the settlement agreement between WMI and JPMorgan Chase that's the foundation of WMI's reorganization plan. But Brown Rudnick's clients assert that, in fact, the transfer never took place and their trust preferred securities are not part of the WMI estate. That's the issue Judge Walrath will address beginning on Nov. 1.
"There's unanimity on the point that our claims have to be resolved before anything else," said Jeremy Coffey of Brown Rudnick, who represents the trust preferred investor group. "It's a $4 billion issue. If we're right, there's $4 billion less in the estate, and I don't think the plan goes forward."
The investors had asked Judge Walrath for a trial apart from the plan confirmation process, but Coffey said it's not important that she set their trial to begin as part of that process. "It will be the first thing she hears," Coffey said. "We'll be ready for trial on November 1."
WMI and the other defendants may still move to dismiss the trust preferred investors' case. They have until Sept. 7 to do so. We called WMI lead bankruptcy counsel Brian Rosen of Weil, Gotshal & Manges but didn't hear back.
This article orginially appeared on The Am Law Litigation Daily.
amlawdaily.typepad.com/amlawdaily/2010/08/wamuinvestorclaims.html
ist doch längst geschehen...
die guten poster die z.b. ID_payback (und andere) liest man hier schon lange nicht mehr
C_P_ hat sich erst kürzlich verabschiedet
weitere werden folgen...
das gesocks wird überhand nehmen und der thread verkommt zur geistigen müllhalde (...siehe anfeindungen und gepöbel der letzten tage)
persönlich durfte ich dabei ja auch meine erfahrungen machen ... und bin seither mehr der stille mitleser
so looong
/paketix
Guten Morgen, allerseits !
Seit ein paar Monaten habe ich auch ein paar "WAMU`S" und seitdem verfolge ich natürlich auch die Kommentare in diesem Forum.
Ich habe den Eindruck, daß hier wirklich gute Profis unterwegs waren und hoffentlich auch noch sind. Wir Frischlinge können allerhand von deren Wissen und Verbindungen lernen und letztlich profitieren. Klar - und das wurde oft genug betont - ist auch ein Totalverlust möglich. Aber der ist einkalkuliert - es ist (hoffentlich) nur Spielgeld.
Wenn wir Neulinge selber nichts wirklich lesenswertes zum Thema beitragen können, laßt uns einfach die Klappe halten. Vielleicht kommen dann die Profis wieder in die Startlöcher. Es wäre uns allen zu wünschen.
Allen einen aufregenden Tag wünscht Specku
|
| Wertung | Antworten | Thema | Verfasser | letzter Verfasser | letzter Beitrag | |
| 58 | 14.573 | █ Der ESCROW - Thread █ | union | sonifaris | 11.06.26 20:33 | |
| 60 | 68.960 | Coop SK Tippspiel (ehem. WMIH) | ranger100 | rübi | 01.06.26 20:17 | |
| 162 | 87.096 | COOP News (ehemals: Wamu /WMIH) | Pjöngjang | noenough | 21.05.26 18:14 | |
| 10 | 1.638 | WMIH + Cooper Info | Orakel99 | Orakel99 | 17.05.26 21:50 | |
| 349 | 198.956 | Wamu WKN 893906 News ! | plusquamperfekt | union | 31.12.25 14:59 |