Washington Mutual Completes Chapter 11 Restructuring Process - Quick Facts

Washington Mutual, Inc. (WAMUQ.PK) announced Monday that its Seventh Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code, became effective today, marking the successful completion of the chapter 11 restructuring process.

In connection with the Plan becoming effective, the company said that it will commence the distribution of funds of approximately $7 billion to parties-in-interest on account of their allowed claims and the distribution of substantially all of the stock in the reorganized company to equity holders. The Company's common stock, traded over the counter under the ticker symbol WAMUQ, has been cancelled.

As a result of the Plan becoming effective, Washington Mutual said that it has emerged as a newly reorganized company, WMI Holdings Corp., which will consist primarily of WM Mortgage Reinsurance Company Inc., a wholly owned subsidiary of WMI that is incorporated in Hawaii, and which will be funded by a $75 million contribution from certain WMI creditors.

In addition, the Company will have access to a $125 million senior credit facility to be used for working capital and permitted acquisitions and originations in the financial services sector. Initially, the primary business of WMI Holdings will be a legacy reinsurance business that is currently operated in runoff mode by WM Mortgage Reinsurance.

Washington Mutual filed for bankruptcy in September 2008 at the height of the financial crisis, after regulators seized its assets and deposits.

Seattle, Washington-based Washington Mutual's collapse in September 2008 was the largest ever U.S. banking failure. The Federal Deposit Insurance Corp. then brokered the sale of Washington Mutual to JPMorgan Chase & Co. for $1.9 billion in September 2008, when the collapse of the housing industry was draining value from the bank's portfolio of risky home loans.

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