Washington Mutual Inc. Shareholder Requests Equity Committee In Chapter 11 Bankruptcy Case Michael Rozenfeld, a Washington Mutual Inc. stockholder has requested that the Department of Justice revisit a previous request for an Equity Committee in the Chapter 11 Bankruptcy case of Washington
News-Antique.com - Jun 05,2009 - For Immediate Release
Michael Rozenfeld, a Washington Mutual Inc. stockholder has requested that the Department of Justice revisit a previous request for an Equity Committee in the Chapter 11 Bankruptcy case of Washington Mutual Inc. Michael previously filed a request for an Equity Committee November 10, 2008, shortly after the seizure of Washington Mutual Bank and numerous subsidiaries. That request was denied on January 9, 2009, after a brief investigation and review by Joseph J. McMahon Jr., Department of Justice. The primary reason it appears to have been denied was that anticipated lawsuits had not been filed yet, and the WMI assets were less than their liabilities. Mr. McMahon stated at that time, that the request for an Equity Committee could be revisited at some future point.
In the November request, Michael had conjectured that lawsuits would be filed against the FDIC and JPMorgan. Those lawsuits have since been filed, but there is no resolution of them as yet. Shareholders are very positive about a favorable resolution of those suits but are concerned there may not be enough time to organize an official Equity Committee to protect the shareholders when resolution is reached. WMI appears to be in negotiations regarding this, based on a review of the attorney bills on file in the Bankruptcy Court in Delaware. Judge Mary Walrath is presiding over that case.
Michael is a member of the Washington Mutual Equity Group, which could be considered an ad hoc Equity Committee. It currently consists of approximately 500 members, and Michael made the current request on their behalf. Getting an Equity Committee is the sole purpose of that organization. Their website is www.WaMuEquity.org. Shareholders and the general public are encouraged to visit that website to get more information on the seizure and Equity Committees. Another popular shareholder website is www.wamustory.com where a plethora of official documents regarding the seizure and sale can be found.
The reason for an Equity Committee is to protect shareholder interests in the resolution of the Chapter 11 Bankruptcy that was filed. Currently the shareholders are not formally protected. Many shareholders have modified their holdings to include shares of WAHUQ, WAMPQ, WAMKQ and WAMUQ, in an attempt to protect themselves at least partially. The company's net cash flow for April was 48.8 million.
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