WaMu Settles With Bank Bondholders For $335M

Law360, New York (October 7, 2010, 3:26 PM EDT) -- Washington Mutual Inc. has won over bondholders with a $335 million settlement offer, a significant step in the failed bank's two-year crawl toward restructuring.

WaMu announced the agreement as part of its sixth amended joint plan of affiliated debtors, filed in the U.S. Bankruptcy Court for the District of Delaware on Wednesday. Before deciding whether to approve the proposed plan, the court will hold a hearing on an accompanying disclosure statement on Oct. 18.

In August, holders of the bank's senior notes rejected an offer to...
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