Washington Mutual Inc. has filed with the U.S. Bankruptcy Court for the District of Delaware an amended plan of reorganization and disclosure statement. The plan implements and incorporates the terms of a revised global settlement agreement reached among Washington Mutual, the Federal Deposit Insurance Corp. (FDIC) and JPMorgan Chase Bank.
The plan aims to allow Washington Mutual to establish a liquidating trust to make distributions to creditors on account of their allowed claims. The trust will distribute funds in excess of $7 billion, including approximately $4 billion of previously disputed funds.
In addition, the plan outlines that various litigations involving Washington Mutual, JPMorgan Chase and the FDIC will be stayed or dismissed, and JPMorgan Chase and the FDIC will withdraw claims against Washington Mutual's bankruptcy estate.
SOURCE: Kurtzman Carson