Metropolitan Mortgage agrees to objection resolution; plan cannot be confirmed until after Jan. 1

By Caroline Salls

Pittsburgh, Dec. 13 - Metropolitan Mortgage & Securities Co., Inc. requested court approval of a stipulation with Western United Holding Co. and Western United Life Assurance Co. under which Metropolitan Mortgage's plan of reorganization cannot be confirmed until after Jan. 1, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Washington.

The stipulation resolves a limited objection to Metropolitan's plan in which Western United argued that the plan is not in the best interest of creditors as a result of adverse tax consequences.

Also under the stipulation, Western United Holding and Western United Life Assurance will be deconsolidated from the Metropolitan consolidated group for tax purposes.

Confidential terms of the deconsolidation transaction will be delivered to Western United within 10 days after the stipulation order and, in turn, the plan cannot be confirmed until after Jan. 1.

The parties to the stipulation will also submit to a confidential, non-binding mediation regarding Western United's claims against Metropolitan.

Spokane, Wash.-based Metropolitan filed for bankruptcy on Feb. 4, 2004. Its Chapter 11 case number is 04-00757.

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