WaMu Equity Committee Will Remain As Is: Judge

Law360, New York (February 18, 2010, 5:51 PM EST) -- A federal bankruptcy judge has decided not to alter the makeup of the equity holders committee in Washington Mutual Inc.'s bankruptcy.

Judge Mary F. Walrath signed an order Wednesday in the U.S. Bankruptcy Court for the District of Delaware denying a motion by investment firm Black Horse Capital Management LLC to reconstitute the committee to include only holders of preferred stock.

Black Horse had argued that such stockholders were the lowest-priority security expected to receive any recovery in WaMu’s capital structure.

Black Horse was one of...
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