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Surprised to find people still posting about this scandal. What's the end game with this BK? Do they plan to reorganize and emerge from chapter 11? Or is this just shark fodder?
MOR for April is out:
http://dm.epiq11.com/TMI/Document/GetDocument/2594514
Some new comments in the financial statement notes regarding JPM proceedings.
-Pagz
I liked this part
Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. JPMorgan Chase Funding, Inc., et al., United States Bankruptcy Court for the District of Maryland, Adversary Proceeding Case No. 11-0340
Order Regarding Sealing/Redaction of Record of Proceedings on Trustees Motion to Employ Special Litigation Counsel (3/27/15)
Order Approving in Part Application to Employ (3/27/15)
Monthly Operating Report (February)
http://dm.epiq11.com/TMI/Document/GetDocument/2573679
Monthly Operating Report (January)
http://dm.epiq11.com/TMI/Document/GetDocument/2567620
Monthly Operating Report (December)
http://dm.epiq11.com/TMI/Document/GetDocument/2559187
Legal and Professional Fees have totaled $46.3 million to 11/30/14.
I am sure the OCC just wants to make sure the Court knows that it does not want to "rubber stamp" every move by the Trustee.
Despite all the settlements to date, the estate has an accumulated loss of $2.9 million since the post-petition date.
Emergency Motion for Order Authorizing Committee to File Under Seal a Limited Objection to Trustees Application for Order Authorizing Employment of Special Litigation Counsel and Limited Modification of Retention Order of Counsel to Trustee Filed by Official Committee of Unsecured Creditors (12/30/14)
Order Granting Motion to Seal/For Order (I) Authorizing the Trustee to Publicly File a Redacted Version of an Application For Entry of an Order Authorizing the Employment and Retention of Special Litigation Counsel to the Trustee and Limited Modification of Retention Order of Counsel to the Trustee, and (II) Authorizing the Trustee to File Under Seal an Unredacted Version of the Application to Employ filed by Trustee Joel I. Sher (12/23/14)
http://dm.epiq11.com/TMI/Document/GetDocument/2550875
Source: Epiq Systems [Docket 2128]
The attorney billings are becoming more and more redacted each month. Looks like some sort of settlement(s) are in the works soon.
Prepetition Unsecured Liabilities
I'm sorry - you're right, we already knew about this one. I'm getting these lawsuits mixed up. Please disregard previous comments.
Estate received $23 million from Barclays Capital.
Paid out $7.5 million to Susman Godfrey.
Both amounts are detailed in the MOR.
"We will receive 40% of the gross sum recovered by settlement or otherwise.... Notwithstanding the foregoing, our contingent fee will not exceed $7,500,000."
So, the settlement is at least $18.75M. But could be more.
That's ~60 per bond net of Susman's fee. I just checked the price, and the ask has gone up 55 in the last couple days (170-225). More efficient price discovery than I would have expected.
Senior Notes are currently in first position.
Holders previously received a package of Adfitech (ADFT) securities and cash valued at $38.6 million. For each $1000 in principal amount of TMA.GB, holders received $121.88 in value comprised of $78.26 in Adfitech Inc 8% Sr Secured Notes due 3/05/20 (ADFT.AA), $37.60 (20 shares) in Adfitech common stock (ADFT) and $6.02 in cash. This lowered the remaining claim to $878.12 per $1000 principal amount. The remaining claim is $266.1 million.
Senior Subordinated Note holders have a claim of $1.3 billion, while Junior Subordinated Note claims are $213.8 million.
I assume there are a whole host of creditors and claims ahead of our notes ... right?
Susman Godfrey was hired as Special Litigation Counsel specifically for the Barclays Capital case.
The assignment was on a contingency fee basis.
Judge Kier granted the Order on 4/22/11.
http://dm.epiq11.com/TMI/Document/GetDocument/1355696
I noticed last week that they quietly slipped in a docket to approve payment of $7.5 million to Susman. The 7.5 M was the max payment possible for Susman in the fee contengent contract.
Must have been for the Barclays win, or something even bigger?
Expect the remaining cases to be resolved during 2015.
October MOR out, BarCap settlement received so total assets equals $38,295,680.
http://dm.epiq11.com/TMI/Document/GetDocument/2543279
With 300,000 notes outstanding that's $127.65 per.
The notes traded back up above this value after the MOR came out:
http://finra-markets.morningstar.com/BondCenter/BondTradeActivitySearchResult.jsp?ticker=C170460&startdate=08/01/2012&enddate=11/25/2014
the attorney billings has a lot of redaction. JPM is always close to the blackout words. Something is in the works. I bet they settle out of court.
The potential big payday will come from Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. JPMorgan Chase Funding, Inc., et al.
Sher is seeking $1.9 billion.
Less than $500,000.
how close is this trial to being finished? How much could we realize?
The Stipulation relates only to the transfer of Whole Loan Servicing Rights suit, which includes some of the same defendant parties involved in Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. JPMorgan Chase Funding, Inc., et al., United States Bankruptcy Court for the District of Maryland, Adversary Proceeding Case No. 11-0340
What's this stipulation agreement filed on the docket mean for us?
Stipulation By Greenwich Capital Financial Products, Inc., RBS Financial Products, Inc., Credit Suisse Securities (USA) LLC and Credit Suisse International and Joel I. Sher, Chapter 11 Trustee, Credit Suisse International, Credit Suisse Securities (USA) LLC and RBS Financial Products, Inc. / Greenwich Capital Financial Products, Inc. Filed by Todd Michael Brooks (related document(s)[1025] Order on Motion for Miscellaneous Relief, [1333] Complaint filed by Trustee Joel I. Sher). (Brooks, Todd)
Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. JPMorgan Chase Funding, Inc., et al., United States Bankruptcy Court for the District of Maryland, Adversary Proceeding Case No. 11-0340
The Answer Deadline is 11/19/14.
Flurry of trades after nothing for two months:
http://finra-markets.morningstar.com/BondCenter/BondTradeActivitySearchResult.jsp?ticker=C170460&startdate=08/01/2012&enddate=10/30/2014
I am wrong.
If you look at the income statement,, Other Non-Operating Income has a footnote:
Thanks EI, it seems I may have been mistaken as to the provenance of that $1.5M payment.
Still, puzzling why they would need to redact the payor in the cash receipts section if the settlement and amount is spelled out in the note you reference. Also puzzling why we have not seen a Goldman payment given the deadline of 10 business days from the court order approving the settlement. Presumably this means that Goldman has not yet been provided wire instructions from the trustee.
Order Granting Trustees Motion For Approval of Settlement and Compromise of Controversies Between the Trustee and Liberty Mutual Insurance Company (8/27/14)
Source: Epiq Systems [Docket 1881]
The settlement required Liberty Mutual to pay $2.275 million minus legal fees and other costs (see MOR page 8).
MOR out and only a $1.5M payment from a redacted payee. Presumably this is the Goldman settlement. A little underwhelming.
Thinking out loud on the math to make us whole using 30% lawyer fees (per note):
$878.12 to make whole -
~$75 in assets via MOR -
~$52 post-lawyer fees via Barclays -
~$40 via Goldman (25%ish recovery and 30% fees)
$711.12
$711.12 * 300K notes = $213,336,000
x= recovery amount
x - 30%x = $213,336,000
x = $304,765,714
$304,765,714 / $1,900,000,000 = 16% recovery via JPM needed
If they can get anything meaningful, I say pay 'em as it will benefit us nicely.
-Pagz
Maybe Susman Godfrey should be engaged for the case against JPM, too?
30ish% fee to lawyer seems about par for the course. I've seen 40% in some other situations I've been involved in.
Now, all eyes on JPM.
Application for Compensation (of Contingency Fee) for Susman Godfrey LLP, Special Counsel, -, Fee: $7, 500, 000.00, Expenses: $0.00. (8/20/14)
My expectation was that the first deal would set the standard and the pace of settlement would really pick up moving forward.
These cases were never going to trial. Weird things can happen. Does anyone remember Texaco, Inc. v. Pennzoil Co.?
56Chevy and I had discussed potential outcomes on these type of cases, but I do not think we ever shared publicly. I thought the estate would settle for one-quarter, maybe one-third, of total claims excluding the case against JPM. I have no idea on that one.
Thanks for sharing with us. I no longer scan Epiq daily.
Assuming we got around the same settlement recovery with Goldman (25%), that creates $17M + $23M from Barclays + $23M in assets = $63MM.
$63MM / .3MM notes = $210 per vs. $120 on last trade
Risk / reward still strong with the large JPM suit to go, if things are how I see.
Looks like a settlement with Barclays just popped up:
http://dm.epiq11.com/TMI/Document/GetDocument/2513318
July 18 was a Friday.
MOR is out but I don't see anything in it about Goldman when I checked over lunch. Do you?
So it looks like we will have to wait until the next MOR to see what Goldman settled for. No payment in this one.
Order Granting Motion to Approve Stipulation/Settlement and Compromise of Controversy Between the Trustee and Goldman, Sachs & Co. (7/18/14)
Payment is due within 10 business days after the later of (a) Bankruptcy Court order approving the Settlement Agreement becomes final, or (b) the date GS is provided an acceptable IRS Form W-9 and wire instructions.
http://dm.epiq11.com/TMI/Document/GetDocument/2504451
...accumulation afterwards quickly reversed my previous post. Feel free to delete, don't want to clog up things for new investors.
Someone sure did want to dump some notes it looks:
http://finra-markets.morningstar.com/BondCenter/BondTradeActivitySearchResult.jsp?startDate=&postData={%27Keywords%27:[]}&ticker=C170460&startdate=08/01/2012&showResultsAs=B&debtOrAssetClass=&endDate=&enddate=7/10/2014
Hopefully they don't know something we don't.
The May MOR is out, at first glance nothing new in it for now so I won't post the link.
Assets per senior note = appx. $80 each
-V
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Sr Subordinated Note holders have a claim of $1.3 billion, while Jr Subordinated Note claims are $213.8 million.
All claim amounts listed above do not take into account any post-petition interest payable from the filing date forward.
Court - Case Numbers- Defendant(s)
USBC Maryland | Docket Date | USDC Maryland | Defendant(s) | Damages | Recovery |
10-00137 | 3/2/2010 | 10-01895 | SAF Financial et al | $22 Million | Settled for $6.5 Million |
11-00329 | 4/28/2011 | 11-01982 | Barclays Capital Inc | $94 Million | Settled for $23 Million |
11-00337 | 4/29/2011 | 11-03192 | Countrywide Home Loans | / | Settled for $3.1 Million |
11-00338 | 4/30/2011 | 11-02796 | Goldman Sachs | $71 Million | Undisclosed |
4/30/2011 | 11-01998 | RBC Capital Markets LLC | $35 Million | Settled $31.125 Million | |
11-00340 | 4/30/2011 | JP Morgan Chase et al | $1.3 Billion | RBS Settled for $23.5M |
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