Replies to post #490727 on Mr Cooper Group Inc (COOP)

[CBA09]

ReF: Well let me just say that we have a lot of big players involved, so If wmih cannot find a perfect fit, I think those players could make a perfect fit target by contributing some of their high income generating assets or high gain assets to a new corporation for stock and bring wmih under that umbrella to utilize the nols quicker and with greater certainty. Maybe wmih is getting some of those trust residuals . This might explain the three year time frame. Jmho

Comment:

WMIH most likely will be the acquirer. Reason, ownership change => 50% of the entity having the NOL's ( WMIH ) will trigger a limitation of eligible NOL's. In turn loss of value.

Key is to have unrestricted use in the $ 6 Billion NOL's. Thus a acquisition that is not defined as "Equity Exchange."

Preferred stock that is both:

1) No voting rights, and

2) No conversion to common stock.

Meets the qualification on "Non Equity Exchange."


Ref: Maybe wmih is getting some of those trust residuals . This might explain the three year time frame.

Comment:

Agree, those SPE / Trusts and captive "Retained Assets" have and will continue to out live the bankruptcy.