WaMu's Shareholder Deal Paves Way For Ch. 11 Exit

Law360, Wilmington (December 13, 2011, 1:52 PM EST) -- Washington Mutual Inc. on Monday sealed a deal giving shareholders their long-awaited cut in the bankruptcy, opening the door for the holding company to end its arduous three-year stint in Chapter 11.

Under the settlement, shareholders will receive a majority of the common stock in the reorganized company, which is divided into two entities — WMI Investment Corp. and WM Mortgage Reinsurance Co. Inc., according to a statement from Washington Mutual and documents filed in Delaware bankruptcy court.

In return, the equity committee representing shareholders’ interests...
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