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WaMu court allows equity committee to pursue “equitable disallowance” of noteholder claims based on allegations of insider trading

  • Ropes & Gray LLP
  • -
  • USA
  • -
  • September 22 2011

On September 13, 2011, Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware granted standing for an equity committee in In re Washington Mutual, Inc. (“WaMu”) to seek “equitable disallowance” of claims held by noteholders that had traded claims after engaging in negotiations with WaMu over the terms of a global restructuring