Deals
WaMu Will Face Trial Over Low-Ranking Securities
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Washington Mutual Inc., the ex-owner of the biggest U.S. bank to fail, will face a November trial in an investor lawsuit over ownership of $4 billion in low-ranking debt known as trust-preferred securities, a judge said.
U.S. Bankruptcy Judge Mary F. Walrath in Wilmington, Delaware, scheduled a trial for Nov. 1, the first day of a confirmation hearing on WaMu’s reorganization plan. Lawyers for WaMu and investors, including Black Horse Capital LP and Lonestar Partners LP, agree the issue must be resolved before the company can end its bankruptcy and distribute more than $6 billion to creditors.