Thornburg Mortgage Inc. 7.50% Series "E" (fka THNMQ)

[sidedraft]

Beats me, just waiting to see where this train stops.

[Bigstud is here]

Wondering what going on? After all these years

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Today Fidelity sent me this:

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
(Baltimore Division)
_______________________________________
)
In re: ) Chapter 11
)
TMST, INC., f/k/a ) Case Nos. 09-17787 (NVA)
THORNBURG MORTGAGE, INC., et al.,1 ) 09-17790 through 17792 (NVA)
)
Debtors. ) (Jointly Administered)
_____________________________________ )
NOTICE OF RESCHEDULED CONFIRMATION HEARING AND PROCEDURES
ALL PARTIES-IN-INTEREST OF THE DEBTORS’ CHAPTER 11 CASES PLEASE TAKE
NOTICE THAT:
1. Confirmation Hearing: The United States Bankruptcy Court for the District of Maryland
(the “Bankruptcy Court”) has rescheduled the hearing (the “Confirmation Hearing”) for October 11,
2022 at 11:00 A.M E.S.T.2 to consider confirmation of the Chapter 11 Trustee’s First Amended Joint
Chapter 11 Plan of Liquidation of (i) TMST, Inc. f/k/a Thornburg Mortgage Inc., (ii) TMST Home
Loans, Inc. f/k/a Thornburg Mortgage Home Loans, Inc., (iii) TMST Acquisition Subsidiary, Inc. f/k/a
Thornburg Acquisition Subsidiary, Inc. and (iv) TMST Hedging Strategies, Inc. f/k/a Thornburg
Mortgage Hedging Strategies, Inc. (the “Plan”) [ECF No. 3340] (as may be amended, modified, or
supplemented). The hearing will be conducted by the Honorable Nancy V. Alquist, United States
Bankruptcy Judge, by audio and video teleconference (for hearing access information see
www.mdb.uscourts.gov/hearings or call 410-962-2688 in advance of the hearing). The
Confirmation Hearing may be adjourned or continued from time to time by the Bankruptcy Court or
the Trustee without further notice other than adjournments announced in open court or as indicated in
any notice filed by the Trustee with the Bankruptcy Court. The Plan may be modified in accordance
with its terms, if necessary, prior to, during, or as a result of the Confirmation Hearing.
2. Solicitation and Voting Procedures: The Bankruptcy Court has entered an Order
approving the Trustee’s Motion for Entry of Order (I) Establishing Solicitation and Voting
Procedures and (II) Establishing Procedures for Confirmation of Plan (the “Procedures Order”)
[ECF No. 3362]. The Procedures Order sets forth the procedures applicable to solicitation, voting,
and tabulation of votes. OTHER THAN THE CHANGE TO THE CONFIRMATION
HEARING DATE SET FORTH IN PARAGRAPH 1, ALL OTHER DATES SET FORTH IN
1 The Debtors in these jointly administered Chapter 11 cases are: (i) TMST, Inc., f/k/a Thornburg Mortgage,
Inc., (Case No. 09-17787) (“TMST”); (ii) TMST Acquisition Subsidiary, Inc., f/k/a Thornburg Acquisition
Subsidiary, Inc. (Case No. 09-17790) (“TMAS”); (iii) TMST Home Loans, Inc., f/k/a Thornburg Mortgage
Home Loans, Inc. (Case No. 09-17791) (“TMHL”); and (iv) TMST Hedging Strategies, Inc., f/k/a Thornburg
Mortgage Hedging Strategies, Inc (Case No. 09-17792) (“TMHS”). Joel I. Sher is the duly appointed Chapter
11 Trustee (the “Trustee”) for the Debtors by Order entered on October 28, 2009 [ECF No. 506].
2 The original confirmation hearing date, October 5, 2022, is being rescheduled as set forth herein.
Case 09-17787 Doc 3417 Filed 08/19/22 Page 1 of 2
2
THE PROCEDURES ORDER REMAIN THE SAME, INCLUDING THOSE SET FORTH
BELOW.
3. Voting Deadline: If you are a Holder of Claim in a Class entitled to vote on the Plan,
all votes to accept or reject the Proposed Plan must be actually received by September 9, 2022 at 4
P.M. E.S.T. by the Trustee’s solicitation agent, Epiq Corporate Restructuring, LLC (“Epiq”): (i) by
first-class mail (whether in the return envelope provided with each Ballot or otherwise) to TMST,
Inc. f/k/a Thornburg Mortgage, Inc. Ballot Processing c/o Epiq Corporate Restructuring, LLC P.O.
Box 4422 Beaverton, OR 97076-4422; (ii) overnight courier or hand delivery to TMST, Inc. f/k/a
Thornburg Mortgage, Inc. Ballot Processing c/o Epiq Corporate Restructuring, LLC 10300 SW
Allen Boulevard Beaverton, OR 97005; or (iii) via Epiq’s online balloting portal at
https://dm.epiq11.com/tmst (click on the “E-Ballot” section and follow the instructions).
4. Objections to Confirmation: The deadline for any party-in-interest to file an objection
to confirmation of the Plan is September 9, 2022 at 4 P.M. E.S.T. (the “Plan Objection Deadline”).
Objections must: (i) be in writing; (ii) conform to the Bankruptcy Rules and the Local Rules; (iii) set
forth the name of the objecting party and the nature and amount of Claims or Interests held or asserted
by the objecting party; (iv) provide the basis for the objection and the specific grounds thereof; and
(v) be filed with proof of service via CM/ECF or with the United States Bankruptcy Court Clerk’s
Office, United States Bankruptcy Court for the District of Maryland, Garmatz Federal Courthouse,
101 West Lombard Street, Suite 8530, Baltimore, MD 21201.
5. Additional Information: Copies of the Plan, Procedures Order and other bankruptcy
filings can be accessed online free of charge at https://dm.epiq11.com/tmst or by contacting Epiq in
writing at TMST, Inc. f/k/a Thornburg Mortgage, Inc., c/o Epiq Corporate Restructuring, LLC, 10300
SW Allen Boulevard, Beaverton, OR 97005, by telephone at 855-914-4643 (Toll-Free) and 503-520-
4438 (International), or by email to [e-mail].
Dated: August 19, 2022 /s/ Joel I. Sher
Joel I. Sher, Bar No. 00719
Richard M. Goldberg, Bar No. 07994
Daniel J. Zeller, Bar No. 28107
Anastasia L. McCusker, Bar No. 29533
SHAPIRO SHER GUINOT & SANDLER
250 W. Pratt Street, Suite 2000
Baltimore, Maryland 21201
Tel: [phone]
Fax: [phone]
Email: [e-mail]
[e-mail]
[e-mail]
[e-mail]
Counsel for Joel I. Sher, Chapter 11 Trustee for
TMST, Inc., et. al.
Case 09-17787 Doc 3417 Filed 08/19/22 Page 2 of 2

[sidedraft]

Below is the link to the bankruptcy filings:

https://dm.epiq11.com/case/thornburgmortgage/dockets

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I got this at Fidelity today:

[sidedraft]

Halted because THNMQ is Revoked:

http://www.sec.gov/litigation/admin/2012/34-66886.pdf

[fixedops]

Hopefully Susman can make something happen here.

[fixedops]

Anybody here anything lately?

[fixedops]

somebody shake thing...

[fixedops]

it awakened a bit today...lol

[Kristallweizen]

Wake up. Volume!

[56Chevy]

It should also be noted Founder77 that there are 4 separate suits in all. So just keep in mind they all have separate activity/dates/times/etc.

[56Chevy]

Notwithstanding the foregoing, such contingency fee shall not exceed $7,500,000.

FWIW- This was a very smart way for the Trustee to handle the professional fees going forward. If Susan Godfrey [SG is also representing the OEC in the WAMUQ case] gets us nothing...she makes nothing and it costs us nothing...but the incentive to agressively go for it is there! And the sooner she gets anything ...the sooner she gets paid. Very smart Mr Trustee!

http://www.susmangodfrey.com/

It should be noted that the Thornburg Trustee (Mr. Joel I. Sher an attorney at Baltimore law firm Shapiro, Sher Guinot & Sandler) is a lawyer himself but cannot represent Thornburg as a matter of law.

He would know what motivates another Lawyer ;)

[56Chevy]

Stipulation and Order Extending Defendants' Time to Respond to Complaint (6/02/11)

Defendants CHL and BAC have until 6/09/11 to move, answer, or otherwise respond to the Complaint.

Source: PACER [Docket 18]

[Founder77]

Wow that's nice pay on performance

thirty-three and one third percent (33-1/3%) of the gross sum recovered by a settlement that is agreed upon, or other resolution that occurs, on or before the 60th day preceding any trial or arbitration setting that is then in place; and forty percent (40%) of the gross sum recovered by settlement or otherwise after that date, plus reimbursement of reasonable out-of-pocket expenses and disbursements incurred in connection with the litigation. Notwithstanding the foregoing, such contingency fee shall not exceed $7,500,000.

I like that! Why wouldn't he do as good as he do in WAM*?!

[Founder77]

Does anyone have a court timeline on when the case will be heard?

[Kristallweizen]

Thanks a lot for stopping by. Very good info.

[56Chevy]

Good luck fella's. If you're going to invest in one of the Pref'ds...this is the one to buy. why? Price. It's the cheapest of the 4. Why does that matter? All 4 issues of the Pref'ds are equal in terms of absolute priority. Meaning IF the Thornburg Trustee is successful in his lawsuit all 4 issues of Prefr'd shares would share equally in that windfall. So why pay more right! Keep in mind he would need to be nearly 100% successful because of the other 2 securities ahead of you but the possibility does exist.

Hope this helps the board..and good luck.

56Chevy

[ETO-Castle]

Thanks for the link, I'm watching

[Kristallweizen]

From the Thornburg Mortgage, Inc. news release dated 3/31/2008:

The company will conduct a tender offer for all of its outstanding preferred stock at a price of $5 per $25 of liquidation value, plus, upon shareholder approval of additional authorized shares, warrants to purchase an aggregate of 5% of the company's common stock outstanding on a fully diluted basis or, if shareholder approval is not obtained, alternative consideration. To the extent that the escrowed funds are not used to purchase the preferred shares that are tendered, unused escrow funds will be returned to the investors. Additionally, the company has suspended dividend payments on all outstanding series of preferred stock.

[Kristallweizen]

Thornburg Mortgage Bankruptcy Trustee Sues Banks For $2.2 Billion

Of DOW JONES DAILY BANKRUPTCY REVIEW

The court-appointed trustee overseeing the liquidation of Thornburg Mortgage Inc. is suing some of Wall Street's biggest banks -- including J.P. Morgan Chase & Co. (JPM), Citigroup Inc. (C) and Goldman Sachs Group Inc. (GS) -- for $2.2 billion, alleging they engaged in series of "collusive" and "predatory" schemes that eventually drove Thornburg into bankruptcy.

Joel I. Sher, the bankruptcy trustee overseeing the liquidation of Thornburg, once the nation's second-largest independent mortgage company, filed four suits last week in U.S. Bankruptcy Court in Baltimore against some of the biggest players in Wall Street's mortgage-finance assembly line. In addition to Citi, Goldman and J.P. Morgan, the trustee also sued Bank of America (BAC) and Countrywide Home Loans as well as subsidiaries of Barclays PLC (BCS), Credit Suisse Group (CS), Royal Bank of Scotland Group PLC (RBS) and UBS AG (UBS).

Representatives for the banks couldn't immediately comment on the allegations.

The suits allege that the company was undone by a series of unlawful acts taken by investment banks during the mortgage crisis in 2007 and 2008.

In the largest suit, Sher sued subsidiaries of J.P. Morgan Chase, Citi, Credit Suisse, Royal Bank of Scotland, and UBS for nearly $2 billion over what he calls "a collusive scheme" to take control of Thornburg and drive it into bankruptcy.

Sher, an attorney at Baltimore law firm Shapiro, Sher Guinot & Sandler, is also suing Goldman Sachs, claiming the investment bank schemed to "confiscate hundreds of millions of dollars of stable, investment-grade mortgage-backed securities" that Thornburg had pledged to Goldman as collateral. The suit alleges breach of contract and seeks judgments totaling at least $71 million.

In a similar suit, Sher claims Barclays Capital improperly seized mortgage-backed securities from Thornburg in August 2007.

A fourth suit claims Countrywide misrepresented the nature of hundreds of home loans securitized and sold to Thornburg in 2006. The suit also alleges that Bank of America, now Countrywide's parent, has "engaged in an elaborate corporate shell game" intended to shed Countrywide's liabilities. Sher is asking the bankruptcy judge overseeing the case to force the bank to repurchase the loans.

Sher was named the Chapter 11 trustee of Thornburg, now named TMST Inc., in 2009 after it was discovered that former managers had used the lender's employees and assets to launch a new company.

Thornburg, based in Santa Fe, N.M., filed for Chapter 11 protection in May 2009, listing assets of $24.4 billion and debts of $24.7 billion. The bulk of those assets -- some $19.7 billion -- were held in securitization trusts. Sher is winding down the company and selling off its assets for the benefit of creditors.

(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection)

-By Patrick Fitzgerald; Dow Jones Daily Bankruptcy Review; 202-862-3544; [e-mail]

[Kristallweizen]

Order Approving Chapter 11 Trustees Employment of Susman Godfrey LLP as Special Litigation Counsel to the Trustee (4/22/11)

Joel I. Sher, Chapter 11 Trustee (the “Trustee”) for (i) TMST, Inc. f/k/a Thornburg Mortgage, Inc., (ii) TMST Acquisition Subsidiary, Inc. f/k/a Thornburg Acquisition Subsidiary, Inc., (iii) TMST Home Loans, Inc. f/k/a Thornburg Mortgage Home Loans, Inc. , and (iv) TMST Hedging Strategies, Inc. f/k/a Thornburg Mortgage Hedging Strategies, Inc (collectively, the “Debtors”), hereby moves this Court for entry of an order authorizing the Trustee to retain and employ Susman Godfrey LLP (“Susman Godfrey”) as his special litigation counsel in litigation to be brought by the Trustee against Barclays Capital, Inc. (“Barclays”).

As more fully set forth in the Retention Agreement the Trustee will engage Susman Godfrey on a contingency fee basis as follows: twenty percent (20%) of the gross sum recovered by a settlement up to and including September 30, 2011; thirty-three and one third percent (33-1/3%) of the gross sum recovered by a settlement that is agreed upon, or other resolution that occurs, on or before the 60th day preceding any trial or arbitration setting that is then in place; and forty percent (40%) of the gross sum recovered by settlement or otherwise after that date, plus reimbursement of reasonable out-of-pocket expenses and disbursements incurred in connection with the litigation. Notwithstanding the foregoing, such contingency fee shall not exceed $7,500,000.

Source: PACER [Docket 1316]

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