On September 13, 2011, the United States Bankruptcy Court for the District of Delaware denied confirmation of the amended proposed plan of reorganization of Washington Mutual, Inc. The Bankruptcy Court sustained the objections of the Official Committee of Equity Security Holders (the “Equity Committee”) on key issues including the value of the reorganized debtor and the proper rate of postpetition interest to be applied to creditors’ claims. In addition, the Bankruptcy Court granted the Equity Committee standing to pursue a complaint seeking equitable disallowance of claims held by certain institutions who participated in the formation of the proposed plan. A copy of the Bankruptcy Court’s opinion can be found here.
A team of Ashby & Geddes’ bankruptcy attorneys, including Bill Bowden, Greg Taylor, Ben Keenan and Stacy Newman, serve as Delaware bankruptcy counsel to the Equity Committee.