EX-99 2 mm04-3009_8ke991mor.htm

EXHIBIT 99.1

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re Washington Mutual, Inc., et al.

Case No. 08-12229 (MFW)

 

Reporting Period: 03-01-09 to 03-31-09

 

MONTHLY OPERATING REPORT

REQUIRED DOCUMENTS

Form No.

Document
Attached

Explanation
Attached

Schedule of Cash Receipts and Disbursements

MOR-1

Yes

 

Bank Reconciliation (or copies of Debtors’ bank reconciliations)

MOR-1a

Refer to attached stmt

 

Schedule of Professional Fees Paid

MOR-1b

Yes

 

Copies of bank statements

MOR-1c

Refer to attached stmt

 

Cash disbursements journals

 

n/a

Refer to MOR 1 for summary of all disbursements.

Statement of Operations

MOR-2

Yes

See attached notes

Balance Sheet

MOR-3

Yes

See attached notes

Status of Postpetition Taxes

MOR-4

Yes

 

Copies of IRS Form 6123 or payment receipt

 

n/a

Payroll services outsourced including remission of taxes

Copies of tax returns filed during reporting period

 

n/a

See listing of filings

Summary of Unpaid Postpetition Debts

MOR-4

n/a

Detail on face of balance sheet.

Listing of aged accounts payable

MOR-4

Yes

 

Accounts Receivable Reconciliation and Aging

MOR-5

n/a

No trade receivables

Debtor Questionnaire

MOR-5

Yes

 

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief.

 

 

 

John A. Maciel

 

April 30, 2009

Signature of Authorized Individual*

 

Date

 

 

 

John A. Maciel

 

Chief Financial Officer

Printed Name of Authorized Individual

 

Title of Authorized Individual

 

 

 

 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

 

                                                                                                

 


In re Washington Mutual, Inc., et al

Case No. 08-12229 (MFW)

DISCLAIMER

 

Washington Mutual, Inc. (“WMI”) and WMI Investment Corp. (together, the “Debtors”) caution investors and potential investors in WMI not to place undue reliance upon the information contained in this Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of WMI. The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court and the United States Trustee. The Monthly Operating Report was not audited or reviewed by independent accountants; does not purport to present the financial statements of WMI in accordance with generally accepted accounting principles; does not purport to present the market value of WMI’s assets and liabilities or the recoverability of WMI’s assets; is in a format prescribed by applicable bankruptcy laws; and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in WMI’s securities, the Monthly Operating Report is complete. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results. This disclaimer applies to all information contained herein.

 

On September 26, 2008 (the “Petition Date”), the Debtors each commenced voluntary cases under chapter 11 of title 11 of the United States Code with the United States Bankruptcy Court for the District of Delaware. Prior to the Petition Date, on September 25, 2008, the Director of the Office of Thrift Supervision, appointed the Federal Deposit Insurance Corporation (the “FDIC”) as receiver for Washington Mutual Bank (“WMB”) and advised that the receiver was immediately taking possession of WMB. Immediately after its appointment as receiver, the FDIC sold substantially all the assets of WMB, including the stock of Washington Mutual Bank fsb, to JPMorgan Chase Bank, National Association (“JPMorgan”) pursuant to that certain Purchase and Assumption Agreement, Whole Bank, dated as of September 25, 2008 (the “Sale”).

 

Prior to the Petition Date, WMI and WMB jointly maintained their respective financial records. As a result of the Sale, many of the Debtors’ books and records were seized by the FDIC and transferred to the custody of JPMorgan. Accordingly, the Debtors are not in control of certain information relating to their operations and financial affairs, including, but not limited to, certain accounting information. In addition, as of the date of the Sale, substantially all of WMB’s employees became employees of JPMorgan. Accordingly, this Monthly Operating Report was prepared, in part, based upon the information and work product and/or representations made available to the Debtors and their professionals by representatives of WMB and JPMorgan.

 

Results represented in this Monthly Operating Report are consistent with WMI’s accounting practices as of the Petition Date. However, records of prepetition assets and liabilities, including, among other things, liabilities owed by WMI to WMB and its affiliates are likely to be adjusted. The Debtors reserve all rights to amend the results represented in this Monthly Operating Report.

 

 

Washington Mutual, Inc., et al

Case No. 08-12229 (MFW)

March 2009 Monthly Operating Report -- UNAUDITED

 

MOR 1 -- Schedule of Cash Receipts and Disbursements

 

 

 

 

Washington Mutual, Inc.

 

WMI Investment Corp.

 

Account

 

Deposit

Deposit

Deposit

Deposit

Money Market

General

 

Deposit

General

 

 

Bank

 

WMB/JPM

WMB/JPM

WMB/JPM

WMB/JPM

Bank of America

Bank of America

 

WMB/JPM

Bank of America

 

 

Bank Account

 

xxx0667

xxx4234

xxx9626

xxx9663

xxx0658

xxx4228

WMI

xxx4704

xxx4231

WMI Inv Corp

Combined

GL Account

 

70 /10450

70 / 10441

70 / 10451

70 / 10452

70 / 12510

70 /10305

Total

467 / 10450

467 / 10305

Total

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Opening Balance - 02/28/2009

 

261,496,465

3,670,316,863

4,653

748,250

304,590,557

5,030,881

4,242,187,669

53,520,840

3,118,171

56,639,011

4,298,826,680

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest & investment returns

 

20,060

281,559

0

57

47,677

444,066

793,419

4,106

99,839

103,945

897,363

Tax Refunds

 

 

 

 

 

 

125

125

 

 

-

125

Reimbursements from WMB

 

 

 

 

 

 

 

-

 

 

-

-

Reimbursements/distributions from subs

 

 

 

 

 

 

2,775,453

2,775,453

 

 

-

2,775,453

Sales of Assets/Securities

 

 

 

 

 

 

3,166,315

3,166,315

 

 

-

3,166,315

Death benefit proceeds

 

 

 

 

 

 

936,370

936,370

 

 

-

936,370

Other miscellaneous receipts

 

 

 

 

 

 

27,475

27,475

 

 

-

27,475

Total Receipts

 

20,060

281,559

0

57

47,677

7,349,804

7,699,157

4,106

99,839

103,945

7,803,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sweep to Money Market account

 

 

 

 

 

500,000

(500,000)

-

 

 

-

-

To new bank account

 

 

 

 

 

 

 

-

 

 

-

-

Total Transfers

 

-

-

-

-

500,000

(500,000)

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

 

 

 

 

412,859

412,859

 

 

-

412,859

Travel and other expenses

 

 

 

 

 

 

4,036

4,036

 

 

-

4,036

Occupancy and supplies

 

 

 

 

 

 

120,663

120,663

 

 

-

120,663

Professional Fees

 

 

 

 

 

 

6,015,927

6,015,927

 

 

-

6,015,927

Other outside services

 

 

 

 

 

 

806,088

806,088

 

 

-

806,088

Bank fees

 

 

 

 

 

 

30,636

30,636

 

39

39

30,675

US Trustee Quarterly Fees

 

 

 

 

 

 

-

-

 

 

-

-

Directors fees

 

 

 

 

 

 

143,833

143,833

 

 

-

143,833

Miscellaneous Adjustments

 

 

 

 

 

 

-

-

 

 

-

-

Total Disbursements

 

-

-

-

-

 

7,534,043

7,534,043

-

39

39

7,534,082

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow

 

20,060

281,559

0

57

547,677

(684,239)

165,114

4,106

99,800

103,906

269,020

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash - End of Month

 

261,516,525

3,670,598,422

4,653

748,307

305,138,234

4,346,642

4,242,352,783

53,524,946

3,217,971

56,742,917

4,299,095,700

 

 

 

 

 

 

 

 

 

 

 

 

 

GL Balance

 

261,516,525

3,670,598,422

4,653

748,308

305,138,234

4,346,642

4,242,352,783

53,524,946

3,217,971

56,742,917

4,299,095,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Net value - Money Market accounts

 

 

 

 

 

 

 

322,116,156

 

 

217,152,857

539,269,013

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cash & Cash Equivalents

 

 

 

 

 

 

 

4,564,468,939

 

 

273,895,774

4,838,364,713

 

 

 


Washington Mutual, Inc., et al

 

Case No. 08-12229 (MFW)

March 2009 Monthly Operating Report -- UNAUDITED

 

 

MOR 1a and MOR 1c -- Cash

 

 

 

 

 

 

 

 

 

Bank Reconciliations

 

The above-captioned debtors (the "Debtors") hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank

statements and copies of all account reconciliations.

 

I attest that each of the Debtors' bank accounts is reconciled to monthly bank statements. The Debtors' standard practice is to ensure that each bank account is reconciled to monthly bank statements for each calendar month 30 days after month end.

 

 

/s/ John Maciel

John Maciel

Chief Financial Officer

Washington Mutual, Inc.

 

 


 

Washington Mutual, Inc.

 

MOR-1B: Schedule of Professional Fees Paid

 

Case No. 08-12229 (MFW)

 

Month Ended March 31, 2009

 

 

 

 

 

 

Check

 

Amount Paid

 

Amount Paid CTD

 

Payee

 

Period Covered

 

Number

 

Date

 

Fees

 

Expense

 

Fees

 

Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Akin, Gump, Strauss, Hauer & Feld LLP

 

1/1/09 -1/31/09

 

Wire

 

3/31/2009

 

$ 651,987.80

 

$ 35,588.65

 

$ 2,578,862.60

 

$ 95,326.09

 

Alvarez & Marsal

 

1/1/09 -2/28/09

 

Wire

 

3/5/2009, 3/26/2009

*

3,738,961.50

 

216,655.20

 

7,632,688.00

 

411,182.64

 

Davis Wright Tremaine LLP

 

12/1/08 - 12/31/08

 

Wire

 

3/5/2009

 

112,461.60

 

1,363.11

 

400,673.00

 

1,798.22

 

FTI Consulting, Inc.

 

1/1/09 -1/31/09

 

Wire

 

3/26/2009

 

320,173.00

 

1,615.12

 

1,116,868.80

 

16,659.85

 

Gibson, Dunn & Crutcher LLP

 

 

 

 

 

 

 

-

 

-

 

129,315.60

 

2,406.69

 

Joele Frank, Wilkinson Brimmer Katcher

 

 

 

 

 

 

 

-

 

-

 

69,485.00

 

4,094.27

 

John W. Wolfe, P.S.

 

11/1/08 - 11/30/08

 

1140

 

3/2/2009

 

23,708.40

 

-

 

23,708.40

 

-

 

Kurtzman Carson Consultants LLC

 

1/1/09 - 1/31/09

 

Wire

 

3/12/2009

 

115,940.77

 

-

 

575,395.34

 

-

 

Miller & Chevalier Chartered

 

12/1/08 - 12/31/08

 

Wire

 

3/5/2009

 

45,126.00

 

-

 

45,126.00

 

-

 

McKee Nelson LLP

 

 

 

 

 

 

 

-

 

-

 

161,315.60

 

6,623.85

 

Milliman

 

1/1/09 - 1/31/09

 

1168

 

3/12/2009

 

3,997.50

 

-

 

27,149.99

 

-

 

Pepper Hamilton LLP

 

12/1/08 - 12/31/08

 

Wire

 

3/2/2009

 

171,535.46

 

-

 

580,148.26

 

33,138.60

 

Perkins Coie LLP

 

9/26/08 - 11/30/08

 

Wire

 

3/2/2009, 3/18/2009

*

201,624.20

 

8,344.90

 

201,624.20

 

8,344.90

 

Richards, Layton & Finger P.A.

 

12/1/08 - 12/31/08

 

Wire

 

3/2/2009

 

19,189.20

 

2,554.35

 

83,970.80

 

15,180.67

 

Shearman & Sterling LLP

 

1/1/09 -1/31/09

 

Wire

 

3/26/2009

 

75,530.00

 

6,108.78

 

369,244.40

 

12,988.67

 

Simpson Thacher & Bartlett LLP

 

12/1/08 - 12/31/08

 

Wire

 

3/26/2009

 

166,450.60

 

972.51

 

166,450.60

 

972.51

 

Towers Perrin

 

11/1/08 - 2/28/09

 

Wire, 1191

 

3/18/2009, 3/26/2009

*

80,082.21

 

-

 

80,082.21

 

-

 

Weil, Gotshal & Manges LLP

 

 

 

 

 

 

 

-

 

-

 

2,761,231.80

 

70,495.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

$ 5,726,768.24

 

$ 273,202.62

 

$ 17,003,340.60

 

$ 679,212.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Multiple invoices were paid during this period. All payments were made by wire on the dates listed with the exception of Towers Perrin. They were paid by wire on 3/18 and check 1191 on 3/26.

 

 


 

Washington Mutual, Inc., et al

March 2009 Monthly Operating Report -- UNAUDITED

MOR 2 Statement of Operations for the period 3/1/09 to 3/31/09

 

 

Washington Mutual, Inc.

 

WMI Investment Corp.

 

March 2009

 

Cumulative to Date

 

March 2009

 

Cumulative to Date

Revenues:

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

Cash equivalents

768,253

 

5,878,092

 

115,516

 

290,339

Securities

292,042

 

1,400,648

 

-

 

2,971,915

Notes receivable - intercompany

(2,734)

 

657,093

 

-

 

1

Other

-

 

-

 

-

 

-

Total interest income

1,057,562

 

7,935,832

 

115,516

 

3,262,255

Earnings (losses) from subsidiaries and other

equity investments

(7,843,136)

 

(219,730,073)

 

(8,216,158)

 

(24,550,185)

Gains (losses) from securities / investments

1,735

 

(12,140,956)

 

-

 

(112,358,710)

Other income

565,017

 

1,484,306

 

(0)

 

(0)

Total revenues

(6,218,823)

 

(222,450,892)

 

(8,100,642)

 

(133,646,640)

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Compensation and benefits

508,889

 

2,262,970

 

-

 

-

Occupancy and equipment

103,152

 

441,832

 

-

 

-

Professional fees

366,334

 

2,250,569

 

-

 

-

Loss / (Income) from BOLI/COLI policies

(178,216)

 

(4,090,930)

 

-

 

-

Management fees / Transition services

200,000

 

1,367,780

 

-

 

-

Insurance

1,684,475

 

9,867,884

 

-

 

-

Other

50,168

 

324,457

 

39

 

353,057

Total operating expenses

2,734,802

 

12,424,562

 

39

 

353,057

 

 

 

 

 

 

 

 

Net profit (loss) before other income

and expenses

(8,953,625)

 

(234,875,454)

 

(8,100,681)

 

(133,999,697)

 

 

 

 

 

 

 

 

Other income and expenses:

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

Notes payable - intercompany

-

 

-

 

-

 

-

Borrowings

-

 

-

 

-

 

-

Total interest expense

-

 

-

 

-

 

-

Other expense / (income)

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

Net profit (loss) before reorganization

items

(8,953,625)

 

(234,875,454)

 

(8,100,681)

 

(133,999,697)

 

 

 

 

 

 

 

 

Reorganization items:

 

 

 

 

 

 

 

Professional fees

5,646,549

 

32,517,703

 

-

 

-

US Trustee quarterly fees

(6,000)

 

33,000

 

-

 

5,200

Gains (losses) from sale of assets

-

 

-

 

-

 

-

Other reorganization expenses

951,422

 

3,375,748

 

-

 

-

Total reorganization items

6,591,972

 

35,926,451

 

-

 

5,200

Net profit (loss) before income taxes

(15,545,597)

 

(270,801,905)

 

(8,100,681)

 

(134,004,897)

 

 

 

 

 

 

 

 

Income taxes

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

Net profit (loss)

(15,545,597)

 

(270,801,905)

 

(8,100,681)

 

(134,004,897)

 

 

 

 

 

 

 

 

Income tax rate

0.0%

 

0.0%

 

0.0%

 

0.0%

 

 


 

Washington Mutual, Inc., et al

March 2009 Monthly Operating Report -- UNAUDITED

MOR 3 Balance Sheet as of 3/31/2009 and 9/26/2008

 

 

Washington Mutual, Inc.

 

WMI Investment Corp.

 

3/31/09

 

9/26/08

 

3/31/09

 

9/26/08

Assets:

 

 

 

 

 

 

 

Unrestricted cash and cash equivalents

4,564,468,939

 

4,018,083,009

 

273,895,774

 

52,974,376

Restricted cash and cash equivalents

112,521,123

 

145,668,884

 

-

 

-

Investment securities

66,313,701

 

59,688,627

 

-

 

266,444,881

Accrued interest receivable

934,427

 

413,253

 

112,041

 

4,084,658

Accounts receivable

-

 

-

 

-

 

-

Income tax receivable

482,059,102

 

742,680,150

 

22,187,560

 

22,187,560

Prepaid expenses

6,112,808

 

11,311,510

 

-

 

-

Cash surrender value of BOLI/COLI

88,256,817

 

84,039,738

 

-

 

-

Funded Pension

39,173,922

 

638,870,071

 

-

 

-

Other investments

4,984,023

 

23,668,909

 

40,276,675

 

65,952,708

Investment in subsidiaries

1,516,518,999

 

1,894,114,445

 

-

 

-

Notes receivable - intercompany

12,047,215

 

58,001,133

 

565,844,197

 

565,844,197

Other assets

25,478,555

 

23,489,277

 

-

 

-

Total assets

6,918,869,632

 

7,700,029,006

 

902,316,248

 

977,488,380

 

 

 

 

 

 

 

 

Liabilities not subject to compromise (Postpetition):

 

 

 

 

 

 

 

Accounts payable

9,591,345

 

-

 

-

 

-

Taxes payable

-

 

-

 

-

 

-

Accrued wages and benefits

390,575

 

-

 

-

 

-

Other accrued liabilities

9,638,559

 

-

 

325

 

-

Rent and equipment lease payable

-

 

-

 

-

 

-

Deferred tax liability / (asset)

-

 

-

 

-

 

-

Other Liabilities - Intercompany

-

 

-

 

-

 

-

Other post-petition liabilities

-

 

-

 

-

 

-

Minority interest

2,000,000

 

2,000,000

 

-

 

-

Total post-petition liabilities

21,620,478

 

2,000,000

 

325

 

-

 

 

 

 

 

 

 

 

Liabilities subject to compromise (Pre-petition):

 

 

 

 

 

 

 

Senior debt

4,108,911,139

 

4,108,911,139

 

-

 

-

Subordinated debt

1,613,991,512

 

1,613,991,512

 

-

 

-

Junior subordinated debt

742,476,453

 

742,476,453

 

 

 

 

Accrued interest payable

75,907,764

 

75,907,764

 

-

 

-

Intercompany payables

684,095,259

 

684,095,258

 

-

 

-

Accounts payable

4,480,720

 

3,941,450

 

-

 

-

Taxes payable

550,872,419

 

550,080,833

 

-

 

-

Payroll and benefit accruals

407,236,707

 

407,215,221

 

-

 

-

Other accrued liabilities

86,421,167

 

92,259,015

 

-

 

-

Other pre-petition liabilities

223

 

223

 

-

 

-

Total pre-petition liabilities

8,274,393,363

 

8,278,878,868

 

-

 

-

 

 

 

 

 

 

 

 

Total liabilities

8,296,013,842

 

8,280,878,868

 

325

 

-

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Preferred stock

3,392,341,954

 

3,392,341,953

 

-

 

-

Common stock

12,988,753,556

 

12,988,753,556

 

1,000,000,000

 

1,000,000,000

Other comprehensive income

(2,123,740,268)

 

(1,590,151,320)

 

22,187,560

 

(36,644,880)

Retained earnings - pre-petition

(15,363,697,545)

 

(15,371,794,051)

 

14,133,260

 

14,133,260

Retained earnings - post-petition

(270,801,905)

 

-

 

(134,004,897)

 

-

Total shareholders' equity

(1,377,144,210)

 

(580,849,862)

 

902,315,923

 

977,488,380

 

 

 

 

 

 

 

 

Total liabilities and shareholder's equity

6,918,869,632

 

7,700,029,006

 

902,316,248

 

977,488,380

 

 

 

 

 

                                                                                                

 


NOTES TO MOR-2 and MOR-3

Note 1: Washington Mutual Preferred Funding

 

On September 25, 2008, the Office of Thrift Supervision concluded that an “Exchange Event” had occurred with respect to the following securities (the “Securities”):

 

 

Washington Mutual Preferred (Cayman) I Ltd. 7.25% Perpetual Non-cumulative Preferred Securities, Series A-1 (to be exchanged into depositary shares representing Series J Perpetual Non-Cumulative Fixed Rate Preferred Stock of Washington Mutual, Inc. (“WMI”));

 

 

Washington Mutual Preferred (Cayman) I Ltd. 7.25% Perpetual Non-cumulative Preferred Securities, Series A-2 (to be exchanged into depositary shares representing Series J Perpetual Non-Cumulative Fixed Rate Preferred Stock of WMI);

 

 

Washington Mutual Preferred Funding Trust I Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series I Perpetual Non-Cumulative Fixed-to-Floating Rate Preferred Stock of WMI);

 

 

Washington Mutual Preferred Funding Trust II Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series L Perpetual Non-Cumulative Fixed Rate Preferred Stock of WMI);

 

 

Washington Mutual Preferred Funding Trust III Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series M Perpetual Non-Cumulative Fixed Rate Preferred Stock of WMI); and

 

 

Washington Mutual Preferred Funding Trust IV Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series N Perpetual Non-Cumulative Fixed-to-Floating Rate Preferred Stock of WMI).

 

In accordance with the terms of the documents governing the Securities, the Conditional Exchange of the Securities occurred on Friday, September 26, 2008 at 8:00 A.M. (New York time). The documentation governing the Securities contemplates that at the time of the Conditional Exchange, each outstanding Security was intended to be exchanged automatically for a like amount of newly issued Fixed Rate Depositary Shares or newly issued Fixed-to-Floating Rate Depositary Shares, as applicable, each representing a 1/1000th interest in one share of the applicable series of preferred stock of WMI. If and until such depositary receipts are delivered or in the event such depositary receipts are not delivered, any certificates previously representing Securities are deemed for all purposes, effective as of 8:00 AM (New York time) on September 26, 2008, to represent Fixed Rate Depositary Shares or Fixed-to-Floating Rate Depositary Shares, as applicable.

 

WMI and its advisors are currently assessing a number of legal, accounting and tax issues related to the Securities and the transactions related to the Conditional Exchange. Because of these unresolved issues, WMI has not yet reflected the Conditional Exchange and/or its attendant transactions on its financial statements, including any possible interests (direct or indirect, contingent or otherwise) in the Securities and the assets, as the case may be, of Washington Mutual Preferred Funding LLC.

 

Assuming that the Conditional Exchange had been completed in accordance with the terms of the relevant documentation, on a pro forma basis, WMI’s financial statements would reflect (a) a credit to shareholders’ equity of approximately $3.9 billion upon issuance of the new classes of preferred stock; (b) an investment in subsidiary (i.e. WMB) of approximately $3.9 billion upon contribution of the Preferred Securities by WMI to WMB; and (c) an immediate and corresponding write-down of such investment in subsidiary.

 

 

Note 2: Restricted Cash and Cash Equivalents

 

                                                                                                

 


 

WMI’s restricted cash and cash equivalents of $113 million includes $57 million of accumulated dividends related to amounts held in escrow pertaining to and pending the resolution or determination of certain goodwill litigation. $53 million of such cash is contained in one of the Debtor’s deposit accounts and is pledged as collateral to secure intercompany transactions between WMI and Washington Mutual Bank (“WMB”), and approximately $3 million of such cash is held as part of a Rabbi Trust.

 

Note 3: Investment in Subsidiaries

 

WMI’s investment in subsidiaries represents the book value of WMI’s subsidiaries, including WMI Investment Corp. (“WMI Investment”). This balance does not represent the market value of these entities.

 

WMI subsidiaries hold unsecured notes receivable from WMB or JPMorgan, as the case may be, totaling approximately $178 million.

 

Note 4: Funded Pension

 

The funded pension balance reflects the (1) the market value of assets as of December 2, 2008 less (2) the November 2008 actuarial estimated settlement value of September 25, 2008 liabilities. The value does not reflect any recent changes in market values or interest rate assumptions since November 2008 which could materially affect the results.

 

Note 5: Taxes

 

The tax asset and liability balances are recorded consistent with WMI’s historical accounting practices as of the Petition Date and adjusted for refunds collected. Generally, tax related claims and payables are recorded on WMI’s books and records on a consolidated basis with the other members of the consolidated tax group and have not been adjusted for any potential claims against these assets. The current recorded balances do not reflect all expected refunds or payments as these amounts are currently being reviewed. The current estimate for the total expected refunds, net of potential payments, is in the range of approximately $2.6 - $3.0 billion. WMI understands that JPMorgan, the purchaser of substantially all of WMB’s assets, may seek to claim all or a portion of the expected tax refunds.

 

No provision or benefit from income taxes has been recorded as the NOL’s are expected to be sufficient to offset income during the reported period.

 

 

Note 6: Liabilities Subject to Compromise (Pre-Petition) – Payroll and benefit accruals

 

WMI’s pre-petition payroll and benefit accruals include balances reflecting WMI’s historic accounting policies related to pension accounting. Prior to the Petition Date, WMI recorded a $274 million liability in respect of such accruals and WMB recorded a $274 million asset, which amounts were netted out and eliminated on a consolidated basis. Neither balance was reported as an intercompany balance. WMI is analyzing these accounting entries and treatment within the context of its bankruptcy proceedings.

 


Washington Mutual, Inc. / WMI Investment Corp.

 

Case No. 08-12229 (MFW)

March 2009 Monthly Operating Report -- UNAUDITED

 

 

MOR 4 Status of Postpetition Taxes

 

 

 

 

 

 

Washington Mutual, Inc.

 

WMI Investment Corp

 

 

 

 

Beginning Tax Liability

Amt approved for pmt

Taxes collected

Taxes remitted

Closing Balance Post Petition

Beginning Tax Liability

Amt approved for pmt

Taxes collected

Taxes remitted

Closing Balance Post Petition

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal

NOTES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withholding

 

 

47,213.00

 

77,698.00

(95,013.00)

29,898.00

 

 

 

 

-

FICA -- Employee

 

 

9,273.66

 

18,012.81

(18,689.70)

8,596.77

 

 

 

 

-

FICA -- Employer

 

 

9,273.66

18,012.81

 

(18,689.70)

8,596.77

 

 

 

 

-

Unemployment

 

 

983.14

 

 

 

983.14

 

 

 

 

-

Income

**

 

 

 

 

 

-

 

 

 

 

-

Other:

 

 

 

 

 

 

-

 

 

 

 

-

Total Federal

 

 

66,743.46

18,012.81

95,710.81

(132,392.40)

48,074.68

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

State and Local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withholding

n/a

 

 

 

 

 

 

 

 

 

 

 

Sales

***

 

 

 

 

 

-

 

 

 

 

 

Unemployment

 

 

3,940.89

745.53

 

 

4,686.42

 

 

 

 

 

Disability

 

 

659.12

240.42

159.86

 

1,059.40

 

 

 

 

 

Real Property

n/a

 

 

 

 

 

-

 

 

 

 

 

Personal Property

n/a

 

 

 

 

 

-

 

 

 

 

 

Other

****

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total State and Local

 

 

4,600.01

985.95

159.86

-

5,745.82

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Taxes

 

 

71,343.47

18,998.76

95,870.67

(132,392.40)

53,820.50

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES

 

** WMI has booked no post-petition income tax provision, nor has it made any payments.

*** See signed statement below and attached listing of filings related to business activity. No outstanding sales tax liabilities reported as of March 31, 2009.

**** Excise Tax returns have not been filed for Seattle and Washington state. WMI is working with the appropriate taxing authority to determine if a filing requirement exists. If it is determined that a filing requirement exists, WMI will file the appropriate returns at this time.

 

I attest that all tax returns have been filed in ccordance with federal / state / county / city requirements for the above period.

 

 

/s/ John Maciel

John Maciel

Chief Financial Officer

Washington Mutual, Inc., et al

 

 

U:\79831\0003\16PFK01!.HTM

 


Washington Mutual, Inc. and WMI Investment Corp.

 

 

Tax Return Filings

 

 

For the Period 3/1/2009 through 3/31/2009

 

 

 

 

 

Property Tax Filings:

 

 

 

 

 

No property tax returns were filed during the period 3/1/2009 through 3/31/2009.

 

 

 

 

 

 

 

 

Sales/Use Tax Filings:

 

 

 

 

 

No sales/use tax returns were filed during the period 3/1/2009 through 3/31/2009.

 

 

 

 

 

 

 

 

 

Payroll Tax Filings:

 

 

 

 

 

Entity

Jurisdiction

Filing Description

Due Date

Date Filed

WMI

IRS (Federal)

Withholding summary of deposits and filings (semi-weekly)

3/4/2009

3/4/2009

WMI

IRS (Federal)

Withholding summary of deposits and filings (semi-weekly)

3/18/2009

3/18/2009

 

 

 

 

 

 

 

 

 

 

Corporate Income Tax/Franchise Tax/Gross Receipts Tax Filings:

 

 

 

 

 

 

 

Entity

Jurisdiction

Filing Description

Due Date

Date Filed

WMI & Subs

IRS (Federal)

Corporation income tax return

3/16/2009

3/13/2009

WMI & Subs

Nebraska

Corporation income tax return

3/16/2009

3/13/2009

WMI

Washington

Business and occupation tax return

3/25/2009

*

 

 

 

 

 

 

 

 

 

 

 

* As part of the process of transitioning the tax reporting functions from JPM, WMI is working with the appropriate taxing authority to determine its B&O filing requirements. During this transition period, no B&O returns are being filed. If it is determined that a filing requirement exists, WMI will file the appropriate returns at that time.

 

 




 

U:\79831\0003\16pfk01!.htm

3

 

Washington Mutual, Inc.

MOR-4: Post Petition Accounts Payable Aging by Vendor

Case No. 08-12229 (MFW)

As of March 31, 2009

 

Vendor

 

Current

 

1 - 30

 

31 - 60

 

61- 90

 

91 and Over

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

AGI Leasing Corporation

 

$ 75.00

 

$ -

 

$ -

 

$ -

 

$ -

 

$ 75.00

Akin, Gump, Strauss, Hauer & Feld LLP

 

1,348,420.95

 

-

 

-

 

-

 

-

 

1,348,420.95

AT&T

 

2,672.67

 

-

 

-

 

-

 

-

 

2,672.67

Bloomberg Finance L.P.

 

12,826.00

 

-

 

-

 

-

 

-

 

12,826.00

Carl, Carl

 

1,370.62

 

-

 

-

 

-

 

-

 

1,370.62

Davis Wright Tremaine LLP

 

151,742.73

 

-

 

-

 

-

 

-

 

151,742.73

Depository Trust Company

 

1,472.00

 

-

 

-

 

-

 

-

 

1,472.00

Fidelity Investments

 

19,109.03

 

-

 

-

 

-

 

-

 

19,109.03

Fishman, Alan H.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Frank, Stephen E.

 

12,500.00

 

-

 

-

 

-

 

-

 

12,500.00

Freilinger CFA, Peter

 

-

 

1,600.00

 

-

 

-

 

-

 

1,600.00

FTI Consulting, Inc.

 

520,903.20

 

-

 

-

 

-

 

-

 

520,903.20

Gibson, Dunn & Crutcher LLP

 

92,457.36

 

-

 

-

 

-

 

-

 

92,457.36

Grant Thornton

 

29,997.90

 

72,787.84

 

-

 

-

 

-

 

102,785.74

Integra Telecom

 

2,418.35

 

-

 

-

 

-

 

-

 

2,418.35

Intralinks

 

-

 

700.00

 

-

 

-

 

-

 

700.00

John W. Wolfe, P.S.

 

100,261.60

 

-

 

-

 

-

 

-

 

100,261.60

JPMorgan Chase Bank

 

479,368.90

 

-

 

60.00

 

-

 

-

 

479,428.90

Kurtzman Carson Consultants LLC

 

-

 

130,778.69

 

-

 

-

 

-

 

130,778.69

Leppert, Thomas C.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Lillis, Charles M.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Logan, Doreen

 

1,250.46

 

-

 

-

 

-

 

-

 

1,250.46

Martin, Colleen

 

1,429.88

 

-

 

-

 

-

 

-

 

1,429.88

Matthews, Phillip D.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Mayer Brown LLP

 

15,343.23

 

-

 

-

 

-

 

-

 

15,343.23

McKee Nelson LLP

 

104,187.24

 

55,603.71

 

-

 

-

 

-

 

159,790.95

Mellon Investor Services, LLC

 

3,102.64

 

4,651.80

 

-

 

-

 

-

 

7,754.44

Merrill Communications LLC

 

-

 

-

 

92,620.02

 

-

 

-

 

92,620.02

Miller & Chevalier

 

24,191.00

 

-

 

-

 

-

 

-

 

24,191.00

Milliman

 

2,157.50

 

-

 

-

 

-

 

-

 

2,157.50

Montoya, Regina T.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Murphy, Michael K.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Osmer McQuade, Margaret

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Pacific Office Automation

 

3,597.00

 

-

 

-

 

-

 

-

 

 

Palsha, Jane

 

30.00

 

-

 

-

 

-

 

-

 

30.00

Pepper Hamilton LLP

 

289,449.18

 

89,792.03

 

-

 

-

 

-

 

379,241.21

Perkins Coie LLP

 

206,468.43

 

74,625.38

 

-

 

-

 

-

 

281,093.81

Reed Jr., William G.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Richards, Layton & Finger P.A.

 

48,124.54

 

23,116.63

 

-

 

-

 

-

 

71,241.17

Schrag, Jan

 

1,839.00

 

-

 

-

 

-

 

-

 

1,839.00

Shearman & Sterling LLP

 

147,291.52

 

-

 

-

 

-

 

-

 

147,291.52

Simpson Thacher & Bartlett LLP

 

67,190.18

 

-

 

-

 

-

 

-

 

67,190.18

Smith, Charles E.

 

2,966.13

 

-

 

-

 

-

 

-

 

2,966.13

Smith, Orin C.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Speakeasy

 

404.50

 

-

 

-

 

-

 

-

 

404.50

Stever, James H.

 

5,000.00

 

-

 

-

 

-

 

-

 

5,000.00

Struck, Peter

 

1,301.18

 

-

 

-

 

-

 

-

 

1,301.18

Suzuki, Dennis

 

521.15

 

-

 

-

 

-

 

-

 

521.15

TERIS

 

519.93

 

-

 

-

 

-

 

-

 

519.93

Thomson CompuMark

 

4,292.00

 

-

 

-

 

-

 

-

 

4,292.00

Thomson Financial LLC

 

7,978.67

 

-

 

-

 

-

 

-

 

7,978.67

Update Legal

 

279,174.00

 

105,560.00

 

-

 

-

 

-

 

384,734.00

Weil, Gotshal & Manges LLP

 

3,337,887.15

 

1,545,210.09

 

-

 

-

 

-

 

4,883,097.24

Williams, Robert J.

 

3,149.53

 

-

 

-

 

-

 

-

 

3,149.53

Z7 Networks, LLC

 

14,795.99

 

-

 

-

 

-

 

-

 

14,795.99

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$ 7,394,238.34

 

$ 2,104,426.17

 

$ 92,680.02

 

$ -

 

$ -

 

$ 9,587,747.53

 

NOTES

*Any holdback for professionals pursuant to their respective retention orders are included in “Current.”

 

 

DEBTOR QUESTIONNAIRE

Must be completed each month

Yes

No

1.  Have any assets been sold or transferred outside the normal course of business
this reporting period? If yes, provide an explanation below.

X

 

2.  Have any funds been disbursed from any account other than a debtor in possession
account this reporting period? If yes, provide an explanation below.

X

 

3.  Have all postpetition tax returns been timely filed? If no, provide an explanation
below.

X

 

4.  Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below.

X

 

5.  Has any bank account been opened during the reporting period? If yes, provide
documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.

 

X

 

 

Explanations

 

1.

On March 18, 2009, WMI closed the sale of six LP interests in venture funds. WMI sold the assets pursuant to the Investment Sales Procedures for total consideration of approximately $4.9 million - $3.2 million in cash and $1.7 million of assumption of liabilities.

 

2.

Pursuant to an order of the Bankruptcy Court dated October 8, 2008, the Debtors were authorized to continue using existing bank accounts and to open new debtor in possession bank accounts.