WILMINGTON, Del. (AP) — A Delaware bankruptcy judge has granted Washington Mutual’s request that she consider vacating parts of a September ruling in which she rejected the bank holding company’s reorganization plan for the second time.
Washington Mutual and supporting creditors argued that a settlement underlying its latest plan is conditioned on the judge removing language in her prior ruling regarding claims that hedge funds supporting WaMu’s earlier plan had engaged in insider trading during the bankruptcy.
The judge said Wednesday she would be inclined to consider vacating parts of her ruling if a federal district court returns jurisdiction by remanding pending appeals filed in response to it.
A group of securities holders objected to the motion, saying the ruling is one of major legal and public interest involving securities laws and bankruptcy proceedings.
