In re Washington Mutual, Inc., Case No. 08-12229, 2011 BL 234046 (Bankr. D. Del. Sept. 13, 2011) The United States Bankruptcy Court for the District of Delaware denied confirmation of a savings and loan association’s chapter 11 plan because it included flawed business and tax valuations, provided for the payment of postpetition interest at an improper rate, and wrongly permitted compound interest on claims. Additionally, the Court ruled that the equity committee had stated a colorable claim for disallowance of certain noteholders’ claims based on alleged insider trading activities, but directed the parties to mediation in an attempt to resolve the issues precluding confirmation of the plan.
The Bankruptcy Filing
Reasonableness of the GSA
Value Distributed Under the Plan
Best Interests of Creditors
Equity Committee’s Standing Motion
Bankruptcy Court Denies Confirmation
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