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Washington Mutual Bankruptcy Hearing Delayed
Published on 07/09/2010
The Washington Mutual Chapter 11 bankruptcy hearing continues to be delayed as reorganization discussions between attorneys for the Banks holding company and creditors have been postponed.
In one of the biggest bank failures in history, Washington mutual filed for bankruptcy in 2008 when its lending business was seized by regulators. Since then, the company has been immersed in legal battles with the Federal Deposit Insurance Corporation, who sold the Banks assets, and JP Chase Morgan who bought the bank for $1.9 billion dollars.
A tentative settlement regarding asset division had been met between the FDIC, JP Chase Morgan, and Washington Mutual earlier this year. But now, investors of Washington Mutual securities are attempting to protect their investment from transferring to JP Chase Morgan as part of the Banks reorganization and are suing.
Shareholders are also alleging that Washington Mutual is hiding information needed to accurately value the settlement agreement.
