Washington Mutual Inc., now just a shell, said it had more than $8 billion in debts when it filed for Chapter 11 late Friday.
Washington Mutual Inc. filed for Chapter 11 bankruptcy protection late Friday, one day after federal regulators seized its banking operations and sold them to JPMorgan Chase in the nation’s largest bank failure.
The bankruptcy documents, filed in Delaware, list more than $8 billion in total debts.
Washington Mutual Inc. survives as a holding company because the Federal Deposit Insurance Corp. on Thursday took over its main assets but left the shell company untouched.
Since JPMorgan acquired WaMu’s banking operation, account holders at WaMu are unaffected by the bankruptcy. Bondholders and other creditors of Washington Mutual Inc. will be left to sort out what assets it actually has left.
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The holding company claimed more than $32 billion in assets, but noted that “a significant portion” is in deposits at the bank operations that were seized.
Washington Mutual Inc. executive vice president Stewart Landefeld made the Chapter 11 filing after a vote of the company’s board of directors Friday, according to bankruptcy papers.
The filing covers both Washington Mutual Inc. and its WMI Investment Corp. unit. The resolution to seek bankruptcy protection also includes instructions to hire three law firms to assist the company.