When Washington Mutual first declared bankruptcy, the Democrats were popular, Jay Leno was getting ready to call time on his career as host of “The Tonight Show,” and Tiger Woods was the most respected athlete in the world.
More than two years later, WaMu’s bankruptcy finally looks to be winding down (I know we’ve said that before) with Monday’s news that Delaware bankruptcy Judge Mary F. Walrath said she would sign off on an order approving a disclosure statement filed in connection with WaMu’s proposed reorganization plan. The plan, which would liquidate $7 billion with the bulk coming from a $6 billion settlement between WaMu, its owner JPMorgan Chase, and the FDIC among various creditors, is set to be voted on by WaMu’s creditors on Nov. 15 — two weeks after the independent examiner’s report is due. In a statement, Washington Mutual said that the settlement “will result in significant recoveries for the estate’s stakeholders and is in the best interests of the estate.” Quinn Emanuel Urquhart & Sullivan’s Susheel Kirpalani, who represents WaMu, did not return a call for comment.
