Mr Cooper Group Inc (COOP)

[JohnnyWinter]

What do you all know about acquisitions as they relate to Type G-Reorganizations?


I am not an expert, however, I just learned the type G reorganization easily satisfies the continuity-of-interest doctrine that must be satisfied by all forms of corporate reorgs. If a company is acquired in other reorgs, the IRS requires that shareholders of the acquired corporation receive an equity interest in the acquiring corporation as consideration for atleast 50% of the value of their equity in the acquired corporation. However, in a type G reorganization, THE CREDITORS are considered shareholders for the purposes of the continuity-of-interest requirement. So, in a type G reorganization, the continuity-of-interest requirement may be met where creditors of a bankrupt corporation have a continuing interest in the acquiring corporation in the form of stock ownership but the shareholders retain no equity interest.

Why do I bring this up?

9/16/2009 A.I Horowitz Review briefs and memoranda and organize response to district court discussion of significance of G reorganization treatment"

(middle of page 20 on the following billing statement PDF)

http://www.kccllc.net/documents/0812229/0812229091023000000000003.pdf

Could be nothing, or it could be a hint at the end of the road for shareholders.

Only time will tell.

I'm not trying to scare people, I am simply sharing as much information as possible so that you all can make the most informed decisions possible.