Walter Investment Management Corp (WAC)

[MC35]

Yes, the plan was accepted last night by the required 2/3 majority of both the term loan holders and the senior noteholders. So the prepackaged Chapter 11 will go through.

However, the recovery available to the existing shareholders under such plan depends on whether the convertible noteholders also agrees to the plan. Please refer to WAC’s press release from Friday, October 20 in its entirety. The last sentence in the second last paragraph states as follows:

“The recovery of the Company's existing stockholders and Convertible Noteholders is dependent upon Convertible Noteholders holding in excess of the requisite principal amount of the Convertible Notes voting to approve the Prepackaged Plan. If such approval is not obtained, existing Company stockholders and the Convertible Noteholders will not receive any recovery.”

If I am incorrect or completely misreading this, please let me know. But there are 3 different classes of debtholders here.

Disclosure: Long