TAX NEWS - June 2010

WaMu files new reorganization plan

WILMINGTON, Del. — Washington Mutual Inc. has again revised its proposed bankruptcy reorganization plan.

The new plan filed Monday tweaks the allocation of tax refunds to be shared by WMI and the Federal Deposit Insurance Corp. in a proposed settlement of lawsuits filed after the FDIC seized WMI's flagship bank in 2008 and sold it to JPMorgan for $1.9 billion.

In the settlement, JPMorgan agreed to turn over $4 billion in disputed deposits to Washington Mutual in return for 80 percent of certain tax refunds.

WaMu planned to keep 68.5 percent of a second round of tax refunds, with the rest going to the FDIC. The new plan revises that split to about 65 percent for WMI and 35 percent for the FDIC.