Judge Mary Walrath Again Denies Confirmation of Washington Mutual's Plan of Reorganization

In a 139-page opinion entered on Tuesday, Delaware Bankruptcy Judge Mary Walrath again denied confirmation of a plan of reorganization proposed by Washington Mutual, Inc. and WMI Investment Corp.  The version of the proposed plan addressed by Tuesday's opinion was the Modified Sixth Amended Joint Plan of Affiliated Debtors.  In the opinion, Judge Walrath also granted, but stayed, the Official Commitee of Equity Security Holders' motion for authority to prosecute an action to equitably subordinate or disallow the Settlement Noteholders’ claims and directed the parties to participate in mediation.  The "Settlement Noteholders" are Appaloosa Management, L.P., Aurelius Capital Management LP, Centerbridge Partners, LP, and Owl Creek Asset Management, L.P., and several of their respective affiliates.

A copy of the opinion is embedded below.



Washington Mutual Opinion Denying Confirmation of Modified Sixth Amended Joint Plan of Reorganization