Washington Mutual: court denies request to disband equity committee

By Lisa Kerner

Charlotte, N.C., Feb. 18 - Washington Mutual, Inc.'s request to disband its official committee of equity security holders appointed by the U.S. Trustee was denied, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The court also denied a request by Black Horse Capital Management, LLC to reconstitute the equity committee.

Washington Mutual had asked the court to either disband the committee or limit the fees and expenses that can be incurred by the committee to $250,000.

In making its request, Washington Mutual said it had been providing the U.S. Trustee with its financial information for more than a year and believed that the committee would needlessly incur significant fees and expenses.

Washington Mutual, a Seattle-based savings and loan holding company, filed for Chapter 11 bankruptcy on Sept. 26, 2008. Its Chapter 11 case number is 08-12229.

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