Washington Mutual Finalizes Chapter 11 Proceedings

On the West Coast, ""Washington Mutual, Inc. (WMI)"":en.wikipedia.org/wiki/Washington_Mutual, has finalized the company's Chapter 11 ""restructuring process"":www.kccllc.net/wamu. The financial institution announced the completion of its proceedings under Seventh Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the U.S. Bankruptcy Code, which became effective on March 19.

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Under the plan, WMI will begin the distribution of an estimated $7 billion in funds to parties-in-interest as related to their allowed claims. Additionally, WMI will move forward with the distribution of ""substantially all"" of the stock in the reorganized company to equity holders.

WMI will now become WMI Holdings Corp. as per the terms of the reorganization, and the emerging company consists

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primarily of WM Mortgage Reinsurance Company, Inc. (WMMRC). Operating as a wholly owned subsidiary of WMI Holdings, WMMRC will receive funding from a $75 million contribution from specific WMI creditors.

WMMRC is incorporated in Hawaii, and the organization will have access to a$125 million senior credit facility that's set to be utilized for working capital and permitted acquisitions and originations within the financial services sector. In an official statement, the company noted that, ""Initially, the primary business of WMI Holdings will be a legacy reinsurance business that is currently operated in runoff mode by WMMRC.""

Commenting on the developments, Michael Willingham, chairman of the official committee of equity security holders and a member of the board of director for WMI Holdings said, ""The outcome of this process is a significant achievement for the equity holders of WMI, who will have the opportunity to benefit from an ownership interest in the reorganized company. The new board of directors will form a corporate strategy and development committee to begin exploring opportunities available to the company to enhance the value of the reorganized company's assets for the benefit of the company's new shareholders.""

Willingham is joined on WMI Holdings' board of directors by Diane Glossman, Mark Holiday, Gene Davis, Timothy Graham, Steve Scheiwe, and Michael Renoff. Signifying the conclusion of the Chapter 11 process, WMI's former common stock ticker symbol, WAMUQ, has now been cancelled.