BlueFoxx, good development...
...continued development, of researching and understanding the principles associated with IRC 382, especially the change of control regulations, and then making a well thought out application to the Strategic Investment Agreement terms and conditions for KKR's potential ownership participation in WMIH. After being airported with late weather arrivals and having free time yesterday, I'm short for a few days. One more pick up this am, then we can enjoy the holiday.
Two items, when you can, would expand your work product and understanding. First is the concept of "value" versus "share count" in the calculation of the % increases should KKR exercise the warrants. This supports your theory component regarding the disadvantages of the rapid rise in PPS in December 2013 on another front (aside from the immediate tax consequences on exercising the warrants as ordinary income on the gain over the warrant exercise price). Second, again, is the 3-year rule. Specifically, there is no beginning or ending period of such, it is a rolling application any time there is a change in the 5%er (increases only). The trigger for testing dates can happen over and over, and there is no 'clearance once one testing period has been passed and met if there is another change in 5%er.
Again, really impressive research and practical application to our unique situation with a theory that is supported by such. Enjoy the holiday.
