Judge Nixes WaMu Bid To Limit Mediation On Ch. 11 Plan

Law360, Wilmington (October 6, 2011, 3:47 PM EDT) -- Washington Mutual Inc. lost its bid on Thursday to fast-track a third attempt at confirming its reorganization plan, failing to convince a Delaware bankruptcy judge that the insider trading claims that doomed its previous plan could be mediated separately from the broader plan process.

On Sept. 13, U.S. Bankruptcy Judge Mary F. Walrath rejected Washington Mutual’s plan, finding shareholders had raised colorable claims that hedge funds involved in forging the settlement at the heart of the plan improperly traded on inside information gleaned from the negotiations....
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