WaMu resolves shareholder dispute
A dispute between WaMu and its shareholders has been resolved.
Washington Mutual (WaMu) appears to have successfully finalised business negotiations with shareholders and creditors.
Reuters reports a dispute between the parties has prevented the bank - which is the largest that has ever failed in the US - emerging from Chapter 11 bankruptcy proceedings.
Around $7 billion (£4.5 billion) will be distributed among creditors as a result of the settlement.
WaMu issued a statement welcoming the development as it will allow it to complete the Chapter 11 process, which it has been in since its loans and savings were seized by regulators in September 2008.
"The Equity Committee and its advisors are pleased with the result and look forward to and support the swift confirmation of the plan," appointed chairman of the equity committee for the case Michael Willingham told the news agency.
Successful sales negotiations could also have persuaded all three of Newave's major shareholders to relinquish their stake in the firm, as it was recently acquired by Swiss power and automation technology group ABB.
Posted by Ron Maverick
Sources: Reuters, December 13th