W2007 Grace Acquisition I, Inc. (fka WGCBP)

[trepanne]

Rest assured that Goldman won't be paying accrued interest on these pfd. They're not going to pay a dime until they get a complete waiver of any further liability - that MOU represents the entire offer.

Now that their fund has gotten the cash from the exit, essentially what Goldman is doing is settling for a dollar amount about equal to the par value plus accrued dividends... except that $6M is getting diverted to a reparations fund, and another $60Mish is going to pay the plaintiffs' attorneys (assuming standard contingency fees of 40% apply). The $1/sh above the par value is all that's left.

It is hard to get too mad at the attorneys here, because (unusually for a securities class action lawsuit) they are actually benefitting their clients, and have done a pretty good job. If they fight it out to the bitter end, shareholder recoveries are unlikely to be better (the standard is pretty high for punitive damages) and it'll just delay the payout and rack up extra charges for the law firm.

Goldman's posture here is "Heads we keep all your money - tails we pay it back, and you can pay your collection costs out of your share".

Nice, huh?