Lawyers for Washington Mutual Inc. and its bondholders stood before a Delaware bankruptcy court judge on Friday to haggle over assets – including $5 billion in cash – and set timelines for the organized downfall of what was once the nation’s largest savings and loan.
On the first day of hearings in the Chapter 11 bankruptcy filing of Seattle-based WaMu, bondholders who hold $800 million of senior notes expressed concern about control over the $5 billion and called for greater transparency.
“We have precious little in the way of facts,” said Thomas Lauria, a lawyer for the 16 bondholders. “We are very concerned about the status of our debt holders and … how fast things seem to be moving outside the court.”
Lawyers also asked Judge Mary F. Walrath of the U.S. Bankruptcy Court in Wilmington, Dela. for joint administration of cases, an extension of the date by which they must file a list of creditors, statement of financial affairs and other documents.
They sought approval for these and other actions that the bankruptcy filing said will let WaMu “operate in Chapter 11 Bankruptcy with minimal disruption and loss of productivity.”
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