Bankruptcy judge still mulling Washington Mutual's Chapter 11 bankruptcy plan
As Washington Mutual lurches toward the bankruptcy finish line, Judge Mary Walrath recently told hungry creditors that she is a long way away from issuing a decision on the company's $7 billion plan under Chapter 11 bankruptcy law.
As Washington Mutual lurches toward the bankruptcy finish line, Judge Mary Walrath recently told hungry creditors that she is a long way away from issuing a decision on the company's $7 billion plan under Chapter 11 bankruptcy law.
According to Bloomberg, Washington Mutual was the largest bank to fail in U.S. history when it filed for bankruptcy in 2008 after its sale to JPMorgan Chase for $1.9 billion.
“Creditors of the debtors have waited nearly three years for any recovery,” Fred Hodara, attorney for the official committee of unsecured creditors, said at a hearing in the U.S. Bankruptcy Court in Wilmington, Delaware.
According to the Wall Street Journal, creditors not included in the Chapter 11 bankruptcy plan are making their voices heard to the court in an attempt to overturn the plan, with billions of dollars worth of damages left unaccounted for from creditors.
The cost of the delayed decision has reached $40 million per month with low-ranking creditors and hedge funds taking the most damage, the news source states.
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