WaMu Asks Bankruptcy Court for an Extension

Washington Mutual has asked a bankruptcy court for a 90-day extension to file its Chapter 11 bankruptcy plan. 

Washington Mutual (WaMu) said the seizure and subsequent sale of its assets by the FDIC to JPMorgan Chase & Co has significantly complicated what the company expected to be a straightforward restructuring or liquidation.  WaMu was the largest U.S. savings and loan before JPMorgan Chase & Co. purchased its banking assets for $1.9 billion in a deal arranged by the FDIC.

The court filing made on Tuesday said, "the seizure and sale almost completely stripped the debtors (WaMu) of their employees and business records."

WaMu said the FDIC's actions caused significant uncertainty about the legal status of some of its most significant assets, including several billion dollars in deposit with Washington Mutual Bank.

WaMu said it has made a great deal of progress during the first three months after initially filing for bankruptcy, and is now in the process of addressing a number of significant legal and economic issues that are affecting its assets and liabilities.

Requests for extensions aren't uncommon in large bankruptcy cases.  If the request for an extension is denied, WaMu's planning period will expire on Jan. 24th, according to the court filing. A hearing on the matter has been scheduled for February 17.

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