A deal could end the two-and-a-half year bankruptcy for Washington Mutual Inc. if all goes according to plan this month.

The settlement is currently under review by shareholders and creditors, both of whom are fighting over the details. However, should both parties agree to the terms of the arrangement, Washington Mutual will go ahead with their reorganization plan to emerge from bankruptcy protection. Under this deal, shareholders would be given ownership in the restructured company.

When the company does finally exit bankruptcy protection, it will benefit from the net operating losses. Recent estimates put these at $2 billion to $5 billion worth of tax breaks. In addition, a litigation trust will be created in the amount of $30 million to safeguard shareholders from the lawsuits that could be filed against Washington Mutual by underwriters and other parties.

Are you considering Chapter 11 bankruptcy? If so, contact us to discuss your situation with a Houston bankruptcy lawyer.