Thursday, 18 September 2014
Last updated 1 hour ago
Feb 17 2012 | 3:24am ET
Just days after imperiling Washington Mutual's exit from bankruptcy, a group led by three hedge funds has breathed new life into the plan.
The so-called TPS Consortium—including hedge funds Black Horse Capital Advisors, Greywolf Capital Management and Scoggin Capital Management—voted against WaMu's reorganization plan earlier this week, leaving the bankrupt bank with less than the supermajority of preferred shareholders that it needs to push the plan through. This week's hearing on WaMu's plan to exit bankruptcy is the third time that firm, which collapsed in 2008, has sought court approval for such a plan.
In exchange for throwing their support behind the plan, the TPS parties will get stock in what's left of WaMu, a reinsurance company, and will share in $18 million provided by JPMorgan Chase, which bought WaMu's banking operations.
Without the change of heart by the hedge funds, common shareholders of WaMu could have been left with nothing. Now, common shareholders will get a quarter of the new shares.
WaMu is expected to respond to the remaining objections to its plan today.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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