WILMINGTON, Del. (Dow Jones)--Washington Mutual Inc.(WAMUQ) as early as Monday could have a settlement of the disputes that have held up confirmation of its $7 billion Chapter 11 plan, Brian Rosen, attorney for the company, said Thursday.
There is no deal yet, but the company is "working toward" a settlement that would allow Washington Mutual(WAMUQ) to put its Chapter 11 plan into effect by the end of February, Rosen said at a hearing in the U.S. Bankruptcy Court in Wilmington, Del.
He asked Judge Mary Walrath, who has twice rejected the plan, to hold her calendar open tentatively for a disclosure-statement hearing, a necessary prelude to pushing through a revised plan. Washington Mutual(WAMUQ) is aiming for a mid-February third try at confirmation of a plan that, if it passes muster, means a big payday for creditors.
"The parties have been working very, very hard, meeting nonstop" with mediator Judge Raymond Lyons, said Rosen, who is with Weil Gotshal & Manges LLP. Papers could be filed as early as Monday indicating the progress that has been made in working toward a resolution of the fights that have held up confirmation.
There are still clouds on the horizon, however, as Rosen's disclosure triggered a statement from a key group of creditors, holders of trust preferred securities, which said they have been left out of the talks.
The chief foes of Washington Mutual's(WAMUQ) Chapter 11 plan have been common shareholders, who have twice battled the company to a standstill over its Chapter 11 plan.
Preferred shareholders, whose claims are worth as much as $7 billion, have taken the position that no deal with common shareholders can go through unless they are also included.
Former parent of Washington Mutual Bank, or WaMu, Washington Mutual(WAMUQ) filed for Chapter 11 protection in September 2008 after the thrift was seized and sold.
Among the key issues holding up confirmation have been suspicions that major hedge funds engaged in insider trading during the bankruptcy case, capitalizing on their knowledge of the state of negotiations with J.P. Morgan Chase & Co. ( JPM) and federal regulators.
The hedge funds deny any wrongdoing. :) :) :)
----------------------------------------------------------------------------------------
Este es mi parrafo favorito...
Preferred shareholders, whose claims are worth as much as $7 billion, have taken the position that no deal with common shareholders can go through unless they are also included.