WaMu Creditors Scoff At Shareholders' Committee Bid

Law360, New York (January 22, 2010, 2:37 PM EST) -- Creditors in the bankruptcy of Washington Mutual Inc. have joined forces with the debtor’s attempts to scrap a committee of equity holders, contending that there is not likely to be any recovery for common shareholders and that administration expenses will consume too much of the estate’s resources.

The official committee of unsecured creditors and investment firm Black Horse Capital Management LLC filed motions on Thursday in the U.S. Bankruptcy Court for the District of Delaware supporting WaMu’s request to disband the equity committee.

Black Horse additionally...
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