Walter Investment Management Corp (WAC)

[pennyvestor]

Walter Investment Management Corp. Files Prepackaged Chapter 11 Plan To Continue Implementation Of Its Previously Announced Financial Restructuring

Filing Follows Approval of Prepackaged Plan by Term Loan Lenders, Senior Unsecured Noteholders and Convertible Noteholders

Operations Expected to Continue in the Ordinary Course

FORT WASHINGTON, Pa., Nov. 30, 2017 /PRNewswire/ -- Walter Investment Management Corp. ("Walter" or the "Company") (NYSE:WAC.BC) today announced that, as expected, the Company filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the Southern District of New York (the "Court") to execute a prepackaged financial restructuring plan (the "Prepackaged Plan"). At the conclusion of the financial restructuring process, which is expected to occur in the first quarter of 2018, the Company expects that it will have reduced its outstanding corporate debt by approximately $800 million1 and enhanced its financial flexibility.

The Prepackaged Plan incorporates the previously announced agreements (the "RSAs") the Company reached with certain lenders holding term loans under the Company's Amended and Restated Credit Agreement, dated as of December 19, 2013 (the "Lenders") and certain holders of its outstanding 7.875% Senior Unsecured Notes due 2021 (the "Senior Noteholders"). The Company's Lenders, Senior Noteholders and holders of the Company's outstanding 4.50% Convertible Senior Subordinated Notes due 2019 (the "Convertible Noteholders") that voted in the recently completed solicitation of the Prepackaged Plan have voted overwhelmingly to approve the Prepackaged Plan, with 100.00% of the Lenders (by amount voted), 99.24% of the Senior Noteholders (by amount voted) and 99.99% of Convertible Noteholders (by amount voted) voting to approve the Prepackaged Plan.

Walter's operating entities, including Ditech Financial LLC ("Ditech") and Reverse Mortgage Solutions, Inc. ("RMS"), are not expected to file for chapter 11 and are expected to continue their operations in the ordinary course.

The actions taken today are intended to reduce the Company's debt, strengthen its balance sheet and better enable Walter to focus on its business, including the growth of its origination and servicing businesses, new technology, innovation, and other areas that are critical to the Company's success. The Company remains strongly committed to serving its customers by enabling their dreams of homeownership and caring for them throughout their homeownership lifecycle.

In connection with the Prepackaged Plan and in-court restructuring process, and as previously disclosed, the Company has obtained a commitment for warehouse financing guaranteed by Walter, which, subject to Court approval, will provide the Company, Ditech and RMS with up to $1.9 billion in available warehouse financing that is expected to convert into exit financing in the same amount. Upon approval by the Court, the new financing and cash generated from the Company's ongoing operations will be used to support the business (including Ditech and RMS) during the reorganization process.

The Company has filed a number of customary motions seeking court authorization to continue to support its business operations during the in-court restructuring process, including the continued payment of employee wages and benefits without interruption. The Company expects to receive court approval for these requests. The Company and its operating subsidiaries, including Ditech and RMS, intend to honor their obligations to suppliers in full in the ordinary course for goods and services provided.

Additional information about Walter's financial restructuring is available on the Company's website at http://www.walterinvestment.com/restructuring.html or by calling the Company's Restructuring Hotline, toll-free at 866-430-6844 or 1-646-795-6176 for calls originating outside of the U.S. Questions can also be emailed to [e-mail]. In addition, court filings and other documents related to the court proceedings are available on a separate website administered by Walter's claims agent, Prime Clerk, at http://cases.primeclerk.com/Walter.

Advisors

Weil, Gotshal & Manges LLP is acting as legal counsel, Houlihan Lokey is acting as investment banking debt restructuring advisor and Alvarez & Marsal North America, LLC is acting as financial advisor to the Company in connection with the financial restructuring.

Kirkland & Ellis LLP is acting as legal counsel and FTI Consulting Inc. is acting as financial advisor to the Lenders.

Milbank, Tweed, Hadley & McCloy LLP is acting as legal counsel and Moelis & Company LLC is acting as financial advisor to the Senior Noteholders.

About Walter Investment Management Corp.

Walter Investment Management Corp. is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. Based in Fort Washington, Pennsylvania, the Company has approximately 4,100 employees and services a diverse loan portfolio. For more information about Walter Investment Management Corp., please visit the Company's website at www.walterinvestment.com. The information on the Company's website is not a part of this release.

https://finance.yahoo.com/news/walter-investment-management-corp-files-032200491.html