Walter Investment Management Corp (WAC)

[BigDog0708]

Well there are certainly a lot of moving parts. My interpretation is as long as all the players involved continue to agree and move forward, the shareholders will be fine.

The Prepackaged Plan is expected to provide for recovery to the Company's existing common stockholders, who are expected to share 50/50 with the Company's existing Convertible Noteholders in a recovery comprising an aggregate of approximately 27% (13.5% each) of the Company's total equity issued on the Plan Effective Date, after giving effect to conversion of the Preferred Stock and subject to dilution by any shares issued after the effective date of the restructuring transactions or pursuant to a management incentive plan; however, upon consummation of the restructuring transactions, the Convertible Noteholders and the existing common stockholders would initially receive, in aggregate, 100% of the Company's new common stock and the Warrants, and the Noteholders would initially receive 100% of the Preferred Stock and the Second Lien Notes.