Washington Mutual Inc said the U.S. Treasury department had deposited $4.77 billion in an escrow account as part payment of a tax refund settlement with the Internal Revenue Service.
Last month, a Delaware bankruptcy court approved a $5.2 billion settlement of the estimated $5.5-$5.8 billion of tax refunds that WaMu expected to receive. "The company expects that the balance of the settled refund amount will be paid in the near term," WaMu said in papers filed with the U.S. Securities and Exchange Commission. The money will remain in the escrow account until the bankruptcy court rules on how it will be divided among various claimholders.
Senior holdco bondholders will do will in this whole mess. Always remember, investigate before selling - fear selling never leads to better returns.
This is my effort to help fit the pieces together to get a better picture of the capital markets.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
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