Washington Mutual files revised Chapter 11 reorganization plan

WaMu files amended Chapter 11 plan

DOVER, Del. — Bank holding company Washington Mutual Inc. has reached an agreement with the Federal Deposit Insurance Corporation on a new reorganization plan that puts WaMu closer to exiting Chapter 11 bankruptcy.

The revised plan filed Sunday in Delaware bankruptcy court settles a dispute involving the bank holding company, the FDIC and JPMorgan Chase & Co. The parties filed lawsuits against one another after the FDIC seized WaMu’s flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion.

The FDIC objected to the initial settlement plan, resulting in negotiations that led to the amended plan.

In addition to distributing some $7 billion in funds among various parties as part of the settlement, the plan allows certain creditors to buy new shares in the reorganized company. Holders of existing shares would receive nothing.

A hearing in the case is scheduled for Tuesday.