Washington Mutual trust to make $74 million distribution to creditors

By Caroline Salls

Pittsburgh, July 27 - WMI Liquidating Trust, which was formed under Washington Mutual, Inc.'s plan of reorganization, will make a $74 million distribution to liquidating trust beneficiaries on Aug. 1, according to a news release.

In accordance with the plan's priority of payments, the trust said the distribution will be allocated to tranche 2 claimants as follows:

• $15 million to holders of allowed senior notes claims;

• $56 million to holders of allowed senior subordinated notes claims; and

• $3 million to holders of allowed general unsecured claims.

According to the release, the distribution was made possible primarily as a result of recent favorable decisions by the U.S. Bankruptcy Court for the Southern District of New York, which permit the release of a $22 million claim reserve established in conjunction with various disputed claims, as well as a release of about $52 million for amounts previously reserved to pay professional fees.

Washington Mutual, a Seattle-based savings and loan holding company, emerged from bankruptcy on March 19.

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