WaMu Securities Holders Call Plan 'Unconfirmable'

Law360, New York (May 12, 2010, 3:41 PM EDT) -- A consortium of trust preferred security holders has launched a challenge to Washington Mutual Inc.'s disclosure statement, saying it contains significant deficiencies regarding a settlement over $4 billion in demand deposits that make the debtors' Chapter 11 reorganization plan “unconfirmable on its face.”

In a filing Tuesday in the U.S. Bankruptcy Court for the District of Delaware, the consortium said WaMu's proposed disclosure statement, filed in March, fails to explain why, after spending nearly a year and a half in Chapter 11, the debtors “suddenly chose...
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