WaMu Resumes Ch. 11 Plan Battle With Shareholders

Law360, Wilmington (July 13, 2011, 6:49 PM EDT) -- Washington Mutual Inc. returned to Delaware bankruptcy court Wednesday for a second try at confirming its reorganization plan, but shareholder opposition took on new weight as allegations of insider trading crystallized — implicating WaMu itself for the first time.

Shareholders, along with creditors whose trust preferred securities were converted to preferred equity when WaMu’s flagship bank collapsed in 2008, have tied their hopes of a recovery in the case to insider trading claims against four hedge funds that helped forge the plan’s central settlement between WaMu,...
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