WaMu Securities Holders Jeopardize Ch. 11 Plan

Law360, New York (July 8, 2011, 8:11 PM EDT) -- A group of Washington Mutual Inc. securities holders said Thursday that recent higher court rulings barred the Delaware bankruptcy court from approving a multibillion settlement with JPMorgan Chase & Co. and regulators that underpins WaMu’s Chapter 11 plan.

The consortium of trust preferred security holders contend that decisions by the U.S. Supreme Court and the D.C. Circuit prohibit U.S. Bankruptcy Judge Mary Walrath from approving the plan and its underlying global settlement relating to the ownership of $4 billion in trust preferred securities.

The high court’s...
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