Washington Mutual: Court clarifies warrant claim reserve amount

By Lisa Kerner

Charlotte, N.C., Feb. 8 - Washington Mutual, Inc.'s request to have the U.S. Bankruptcy Court for the District of Delaware reconsider a Jan. 14 order estimating the maximum amount of litigation tracking warrant (LTW) claims in connection with establishment of a plan reserve was denied, according to a Feb. 8 court filing.

The court kept the claim amount at $337 million.

As previously reported, when it filed its original estimation motion in November, the company asked the court to set the maximum number of LTW claims at $250 million.

The LTW claimants subsequently asked the court to set the claim amount at no less than $337 million.

Washington Mutual argued that while the court set the claim amount at $337 million following a Jan. 6 hearing, it also referred to the LTW claims reserve in two other opinions, each time in different amounts - $347 million at the Jan. 6 hearing and $334 million in a plan confirmation summary judgment opinion.

The company had asked the court to either file a revised order setting the reserve at $337 million or to clarify the basis for the $347 million reserve.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.