‘Ghost of WaMu’ Posts 61-page Expert Valuation Report
“After Washington Mutual Bank became the biggest failure of any savings and loan in U.S. history, its bankruptcy proceedings languished for over three years, complicated by insider claims against the hedge funds that allegedly traded in the bank’s debt while trying to negotiate a reorganization. Just last month, the court considered the debtors’ sixth amended plan, which essentially cancelled all existing stock, leaving the common and preferred shareholders with nothing, while issuing stock in a reorganized entity to the most senior creditors and equity investors. Not surprisingly, the ‘out’ creditors objected to the plan, claiming it substantially undervalued the stock and overpaid the equity stakeholders…
Business appraisers and insolvency analysts may want to take a look at the 61-page report by the debtors’ expert, posted recently on the ‘Ghost of WaMu.’ Started in 2009 by a former WaMu shareholder who was ‘burned’ by the FDIC’s seizure of the bank’s billion-dollar assets, the site has served as a central repository for the latest filings.”