WILMINGTON, Del. — Washington Mutual Inc. has reached an agreement with dissident creditors that could pave the way for approval of its latest bankruptcy reorganization plan.
A hearing in WaMu’s bankruptcy was delayed several hours Thursday as attorneys hammered out a settlement involving creditors who bought certain WaMu securities that were converted into stock when regulators seized WMI’s flagship bank in 2008 and sold its assets to JPMorgan Chase.
The securities investors, who faced far less recovery as stockholders rather than debt holders, had voted against WMI’s plan, raising doubts as to whether it could win court approval.
In exchange for withdrawing their no votes, the investors will receive $18 million from JPMorgan and an unsecured claim of about $618,000.
They also can seek reimbursement of up to $15 million in legal fees.