OK, here are a few of my observations of yesterday (and I know I'm not Catz...)
The couple of big things that struck me yesterday were the strict timekeeper side of JMW in the early part of the day with Debtor, et al, arguing for the POR. Her reminders as to how much time they had left were telling, and each of them on the pro side essentially recapped their written arguments, exactly what she implored them not to do! Her questions, peppered throughout, were good indications of the questions she had while reading the written arguments and the direction of her thinking, IMHO. She threw out court opinions that go to the heart of the case, again IMHO, so we got some early indications of where her head is.
The comments regarding WMMRC, made by BR, were ridiculous...that any growth of the company was not within their purview to forecast or even take into consideration...that the new board would have to do that...when so much of their financial analysis has been wrapped up in how there is no value there. Quite the reversal in position. Similarly, the lack of attention, as pointed out by Art, to potential litigation and dollars from those suits, clearly shows to the court a lack of good faith in trying to maximize value past creditors on the waterfall.
In the latter part of the day, by contrast, attorneys were allowed to present almost without restriction...they were presenting new material, challenging her to think and she took them up on that by allowing unlimited time. All of the attorneys on the anti POR side had well crafted arguments and even though there were laughs, the attorneys were appropriately serious, vs the morning where each new attorney tried to out comedian the other, making them all look silly. BR's house of cards was beneath him, JPMC's hired gun's comments fell flat and the references to the carney atmosphere were exceedingly unprofessional...meant for media consumption.
Most impressive in the afternoon, to me, was the tying together for the court the various comments by the SNH's as they plead lack of knowledge as evidenced by their "bad" trading decisions...the fact that as they knew discussions were occurring, and more money would be flowing they sold higher waterfall positions to buy lower, cheaper positions that would ultimately return more once the plan was confirmed.
What will she do with the information? IMO, IT will move forward by the EC. I don't think the plan survives, it will go to DC for adjudication. JPM and FDIC have had recent rulings go against them or unflattering information (such as the excessive $$ JMP received from the gov) come to light and their arguments yesterday were an attempt to whitewash the facts trying to get JMW to quickly make a decision before the train runs over them.
Time frame for a decision I am guessing (with help from Ed Sargent) might be 2-3 weeks...but that is not close to the end, unfortunately.
All, as always, in my opinion!
Ilene
AI
