WaMu bankruptcy hearing adjourned till July 20

by Zagros on July 8, 2020

UPDATE 1-WaMu bankruptcy hearing adjourned till July 20

WILMINGTON | Thu Jul 8, 2020 12:40pm EDT

Del., July 8 (Reuters) - A Washington Mutual Inc (WAMUQ.PK) bankruptcy hearing to consider the company’s disclosure statement and a request by shareholders for an examiner was postponed on Thursday and tentatively rescheduled for July 20.

The company has been trying for weeks to get court approval for its disclosure statement, which must be approved before the company can send its reorganization plan to creditors for a vote.

Washington Mutual filed for bankruptcy in September 2008 after regulators seized its lending business in the biggest bank failure in U.S. history.

Thursday’s hearing was delayed for more than two hours as attorneys for the company, creditors, the Federal Deposit Insurance Corp and shareholders held talks in the hallway outside the courtroom.

The hearing only lasted long enough for the company to ask for an adjournment for further talks.

Washington Mutual has spent most of its bankruptcy in legal fights over assets with the Federal Deposit Insurance Corp, which sold its seized banking operations, and JPMorgan Chase & Co (JPM.N), which bought the bank for $1.9 billion.

Earlier this year, Washington Mutual reached an agreement with the FDIC and JPMorgan to settle various lawsuits and divide disputed assets and businesses.

Shareholders want an examiner to gather the documents and evidence that they say Washington Mutual and others are not providing, information that they say is needed to accurately value the settlement agreement.

Shares of Washington Mutual were down 3 percent at 16.5 cents in mid-day pink sheet trading on Thursday.

The case is In re Washington Mutual Inc, U.S. Bankruptcy Court, District of Delaware (Wilmington), No. 08-12229.

(Reporting by Tom Hals; Editing by Phil Berlowitz)

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