WaMu Creditor Group to Support Reorganization, Lawyers Say
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Washington Mutual Inc., the former owner of the biggest U.S. bank to fail, resolved a dispute that had threatened to block common shareholders from getting stock in the only part of the company to exit bankruptcy.
A group of creditors known as the TPS Consortium, who hold securities that resemble preferred shares, agreed to switch their vote on WaMu’s reorganization plan and support the $7 billion proposal, WaMu attorney Brian Rosen told U.S. Bankruptcy Court Judge Mary Walrath in Wilmington, Delaware today. Consortium attorney Robert Stark confirmed the deal.