(including the notes and charts that exceed the reporting obligations required by quarterly
summary reports)4 and the recent representations made in WMILT’s most recently published
Form 10-K, dated March 29, 2019, for the period ended December 31, 2018 (the “2018 10K”), a
copy of which is annexed hereto as Exhibit “C”, that, as of February 28, 2019, the remaining net
assets of WMILT are approximately $34.9 million and, based upon the amount of Allowed
Claims and Disputed Claims in Class 18 yet to be resolved, WMILT projects that there will not
be additional distributions made to holders in Classes 19, 21 and 22. 2018 10K, p. 7.
3. While the consideration of the relief requested in the Griffin Objection and the
attendant litigation should stop there, as the balance of the Griffin Objection is therefore
irrelevant, in light of the blatant misrepresentations contained therein and the ongoing effort to
malign the integrity of the members of Trust Advisory Board, the Liquidating Trustee, WMILT’s
management and WMILT’s professionals, WMILT responds herein so that the Court has the
benefit of accurate facts, the relevant provisions of the Plan and applicable law. In doing so, the
Court will understand that the Court and WMILT have acted appropriately throughout the
Debtors’ chapter 11 cases, both in a manner consistent with the terms and provisions of the
Liquidating Trust Agreement, the Plan and applicable law.
4. The latest effort, the Griffin Objection, is most befuddling for not only is it
factually inaccurate, but, in the end, it actually argues against the very interests it claims to
represent, holders of Preferred Equity Interests in Class 19. Specifically, apart from the fact that
WMILT acted in accordance with the terms and provisions of the documents which this Court
approved, by doing so, the Final Stipulation, as defined below, removed a dollar-for-dollar $24
4 It should be noted that WMILT prepares and reports its financial statements on a liquidation basis which requires
WMILT to prepare and report such statements based on estimated values, thereby providing additional insight into
its financial and other affairs than is normally seen in traditional GAAP reporting.
million claim which would otherwise have been senior in right of recovery to holders in Classes
19, 21 and 22, all in an effort to potentially generate value for such equity interest holders. In the
event that the Griffin Objection could even be considered, and it cannot due to the allowance of
claims pursuant to the Final Stipulation, it might eliminate the possibility, albeit remote, of any
recovery for Ms. Griffin and other similarly situated equity interest holders.
5. Additionally, as detailed below, the Griffin Objection attempts to mislead the
Court by claiming that the execution of the Final Stipulation was a stealth operation intended not
to be seen by the Court or the Debtors’ creditors and equity interest holders. In reality, however,
the execution and effectiveness of the Final Stipulation was publicly disclosed in filings with the
Securities and Exchange Commission only four (4) days later and in quarterly summary reports
filed with the Court, and which were filed under Form 8-K and published in numerous places
including the Trust’s website. These disclosures were repeated quarterly and annually for almost
three years, hardly the actions of a clandestine operation.
6. Furthermore, the Griffin Objection attempts to reopen the classification of the
Subordinated Claims, as defined below, that was approved by the Court-- of course, without
addressing standards applicable to doing so, especially, an order that is eight years old. In doing
so, such attempt is without regard to the fact that the Subordinated Claim classified as Class 19,
Preferred Equity Interests, emanates from the sale of WMI’s preferred equity interests. As such,
there cannot be an allocation to Common Equity Interests just because the Griffin Objection
thinks it would be equitable and might create value for Preferred Equity Interests.
7. While WMILT appreciates that Ms. Griffin and other equity interest holders
continue to feel slighted by the FDIC’s seizure of Washington Mutual Bank, at some point (now
over ten years), they must accept the fact of the seizure and that everything possible has been
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