WMI, Investors Can't Find Common Ground On Ch. 11 Plan

Law360, New York (June 15, 2011, 9:56 PM EDT) -- Talks between Washington Mutual Inc. and shareholders to find a mutually acceptable reorganization plan reportedly broke down Wednesday, a potential headache for the presiding Delaware bankruptcy judge.

The official committee of shareholders on Wednesday resumed a probe into alleged insider trading by four hedge funds involved in the case, an investigation the committee postponed while it tried to reach a final settlement that would allow WMI's reorganization to go forward unmolested.

Confidential sources told the Wall Street Journal about the talks' failure. Attorneys for the parties...
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