WILMINGTON, Del. (AP) — Attorneys for Washington Mutual Inc. and supporters of its bankruptcy reorganization plan are accusing creditors who stand to receive nothing of trying to hold the plan hostage with unfounded allegations of insider trading.
Attorneys for WMI and its supporters on Wednesday accused the company’s equity holders committee and a group of investors who purchased certain securities that are now considered preferred stock of trying to block confirmation of the plan in order to win concessions from other creditors.
A Delaware bankruptcy judge is hearing final oral arguments on whether to confirm WMI’s reorganization plan.
The plan is based on the settlement of lawsuits filed after the federal regulators seized WaMu’s flagship bank in 2008 and sold its assets to JPMorgan Chase in the largest bank failure in U.S. history.