S&L giant Washington Mutual (WAMUQ.PK) finally gets the go-ahead to exit bankruptcy...


S&L giant Washington Mutual (WAMUQ.PK) finally gets the go-ahead to exit bankruptcy proceedings after more than three years of brutal legal battles. The plan calls for ~$7B to be distributed to creditors and includes significant recoveries for shareholders, who often are left with nothing in bankruptcy cases. WaMu's assets were sold to JPMorgan Chase (JPM +1%) in 2008.

Comments (2)
  • DougRk
    , contributor
    Comments (1686) | Send Message
     
    I'm trying to make heads or tails of this. There are 1.7B shares at 4.5c as I write this. That's shareholder equity of $76.5M. What is the shareholder recovery?
    17 Feb 2012, 05:20 PM Reply Like
  • DougRk
    , contributor
    Comments (1686) | Send Message
     
    Looks like shareholders get 95% equity in a new WaMu, which is being capitalized at $75M. So the current price gets you more or less your cash plus interest in the reinsurance company WaMu.

     

    May be worth a shot. Thoughts anyone?
    17 Feb 2012, 05:27 PM Reply Like
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