Judge seeks extension of WaMu deal deadline 12/20 03:08 PM
* Judge asks parties to extend approval deadline for deal
* Deal divides $10 bln among WaMu, JPMorgan (JPM:$40.0800,$0.4100,1.03%) and FDIC
WILMINGTON, Del., Dec 20 (Reuters) - The judge overseeing the Washington Mutual Inc (WAMUQ:$0.0620,$0.0010,1.64%) bankruptcy asked the parties to a key $10 billion deal to extend a deadline for her ruling on the agreement to Jan. 31 from Dec. 31, according to documents filed on Monday.
The settlement between Washington Mutual (WAMUQ:$0.0620,$0.0010,1.64%) , JPMorgan Chase & Co (JPM:$40.0800,$0.4100,1.03%) and a bank regulator divides $10 billion of disputed assets.
The deal provides most of $7 billion that Washington Mutual (WAMUQ:$0.0620,$0.0010,1.64%) plans to distribute to its creditors under its plan of reorganization. The rest is divided between JPMorgan Chase (JPM:$40.0800,$0.4100,1.03%) and the Federal Deposit Insurance Corporation.
Delaware Bankruptcy Judge Mary Walrath said she will not be able to issue an opinion prior to Dec. 31, which is the deadline for approval that is written into the agreement.
Walrath asked the parties to the agreement to tell her by Dec. 29 if they are willing to amend the agreement to allow for approval of the deal by Jan. 31.
The case is In re Washington Mutual Inc (WAMUQ:$0.0620,$0.0010,1.64%) , U.S. Bankruptcy Court, District of Delaware, No. 08-12229. (Reporting by Tom Hals, editing by Dave Zimmerman)
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