And shows the sole shareholder of the California Corp, WAMU 1031 Exchange is the WMI Liquidating trust!

Without pulling up the latest quarterly statement I'm pretty sure that most if not all of that current cash is restricted, held for employee claims (likely to be disallowed or paid at much lower rate) but still must legally hold that amount until resolved. And other amount is held for administrative costs.

We can't really expect a further payout (at least of substance) until the tax refunds are received hopefully early to mid 2017 or until the employee claims are settled resolved - expect at least another year I'd guess on that part.

Remember that these are notes that were a partial payment of your liquidating trust interest (LTI).

We still have about $2.30 owed to us per LTI (accumulating interest at what 1% or some insubstantial amount) by the trust - this is the amount we want paid back sooner than later and for those with other share classes waiting for equity payment you want this amount paid in full. This will be paid by tax refunds, released funds held for employee claims or any other source not currently accounted for on trust quarterly statement.

The tiny payment we just received a week or two ago was a partial redemption of the notes held by WMIH. These notes pay us 13% interest and WMIH has been slowly working on redeeming them as the reinsurance business generates enough free cash. These are an obligation of the reinsurance business only - sub of WMIH - and since it is non-recourse to WMIH will only be redeemed via the free cash generated from run-off reinsurance business.

They took it down just for me today! I repurchased the shares I sold last Friday at my limit price of $6.75; I had a $500 profit before I even logged on this morning.

I occasionally read the charts correctly - but mostly I'm just happy it worked this time around as I think its going higher next week on earnings release.

I wouldn't rely on the trust or E-trade to get the basis calculation correct; you should definitely be tracking your own basis. Your accountant should be able to help you track this based on your purchase history and what you've already reported thus far.

The income on the K-1 should likely be reported simply as it is stated; that should be easy for any accountant worth his salt. However, the payoff of the notes may require some gain/loss reporting depending on how much basis you "elected" or was reported as allocated to the notes themselves.

Remember that WMI Liquidation Trust is a Trust and not a Mutual Fund or Stock in which you are likely more accustomed to investing.

First, the amount was likely small unless you held a really significant amount of WAHUQ's prior to bankruptcy finalization. The amount of income reported on your K-1 is the interest that accrued to you on the remaining balance due from your LTI's. Since it is a trust all income is reported to the beneficial ownership interests - i.e. LTI owners.

This does not mean that you actually received the cash on this interest rather the balance per LTI went up by the nominal interest rate accrued per share.

Just report the income as indicated on your K-1; it should be basic interest income reported on Schedule B or line 8.

I don't jump on here very often anymore; but I'll still respond to your question here.

Yes, I also received a normal dividend cash payment in my brokerage account and a partial redemption on Dec 2, 2015.

One other point; both interest and redemption were on the Junior paper as the Senior paper was already fully redeemed last April. I have about 85% of my original junior paper left (including increase of PIK along the way).

My Wahuq were held in my Roth IRA at Scottrade. I tried to get the Trust to send me a statement but they have to get mailed to Scottrade. Scottrade does not forward them to me unless I ask them to, which I do periodically so I can look over their shoulder and make sure they are doing things correctly; and track the balance remaining on my LTI shares correctly. I'll ask for a statement next month that reflects the recent distribution.

Just the small amount of remaining Senior Notes.

You are correct in a couple of points.

1.) Yes, WMIH is not liable for notes beyond the value of WMMRC.
2.) Yes, WMMRC is saving lots of cash by paying in notes.
3.) If WMMRC never generates enough cash the notes may not be paid off in the future.

However, WMIH is not saving cash per se; WMIH will never get anything from WMMRC if the notes are not paid in full.

Also, as I keep an eye on the balance sheet of WMMRC I still believe there to be enough assets to pay off the notes in time. How much time I have no idea. WMMRC is still in run-off mode and is not generating new business. So unless or until all contracts are either sold off (as the ones earlier) or the contracts are cancelled (due to mortgages being paid off) then we wait.

Since 13% is a very high interest rate for any going concern I'm quite confident that WMIH won't be utilizing WMMRC as a business asset until the notes are redeemed. I have seen plenty that anticipate the WMIH will reap a return of value from WMMRC due to the value of their holdings and insurance contracts (from increase in underlying asset values) having increased since the original values were placed on WMMRC. And I fall in this camp as well.

Which means I'm still fully confident that all RONs will be redeemed in the course of time. And I'm perfectly happy to earn 13% as long as WMIH and WMMRC want to pay me.

Just musing out loud; but I wonder why they are only doing a partial surrender of Sr. Notes. Didn't they do like 98% of Sr. Notes last time around. My Sr notes are a tiny fraction of remaining notes.

The only reason I can come up with is: Once they pay off Sr notes they will have to pay cash for dividends on Jr Notes (or at least I know they can't pay cash on Jr. note dividends while Sr notes are still outstanding).

I still presume paying off the Jr. notes is primarily a foregone conclusion primarily just a cash flow consideration as WMMRC continues to run off its existing business.

http://investorshub.advfn.com/Washington-Mutual-WAHUQ-Trust-Prf-%28fka-WAHUQ%29-14346/

You have that mostly correct; but LT is not affiliated with the notes at all. Any redemption will be directly from WMIH.

WMIH will redeem the remaining notes as WMMRC generates the cash to do so. The notes are secured against WMMRC only (a sub of WMIH). WMMRC is in runoff mode and can be reviewed quarterly when WMIH issues its quarterly statement.

And yes, you will continue to accrue Jr notes interest at 13% paid in kind. You will not receive cash for interest payments on your Jr notes until the Sr notes are paid in full.

It should go out in today's mail.

Bingo!

If the IRA money comes to your house it is still property of your IRA and should be correctly deposited into your IRA. It won't actually be a category of contribution you have likely used before as it is settlement proceeds or something like that.

It will likely be made exactly as your account is titled and how you receive your statements. I suspect it is Jane Doe IRA or something. I doubt it will have the brokers name. But your bank will likely require that you deposit into your IRA. Otherwise the bank won't be able to issue a proper 1099-R for the amount you elect to subsequently distribute subject to income tax (or Roth maybe not) or whatever other situation may correctly apply.

Being over 59 1/2 just means there is no penalty for early distribution if you subsequently take a distribution.

Sr notes are already 99% redeemed.

For the 12th time:

No, no, no

"and EI - yes WMIH is the souurce to LT for RONotes but as this is WMMRC paper in non recourse form - it is WMMRC to WMIH to LT I believe"

The LT is no longer involved with the notes; they have been distributed when and how you get paid is only between the holder and WMIH (WMMRC being the sub). The broker is the intermediary but not the LT.

Any mention of RoN in the LT quarterly statement is only residual undistributed notes. The notes we hold are already distributed from the trust just as if they were shares of say MSFT. The value of the MSFT or in our case the RoNotes is strictly between us and the issuing company.

We should get a check in the mail for the proceeds from the LTI - unrelated to Notes previously distributed. See my earlier post for a refresher if necessary.

I believe that the IRA accounts (at least I know Scottrade has kept custody of these) will receive the funds directly. If the LT sends you a check for the amounts that should have been paid directly to your IRA, just take the check to your broker and have them deposit it directly into your account as LTI proceeds. It will be a non-taxable event then.

I do not get statements for my IRA holdings. I periodically chase down a copy from Scottrade which my local office in Bellevue has been great about when asked.

98% of the Senior Notes; All of the Junior notes are still outstanding.

And that would be for everyone; other than a few elections (minimal if I remember correctly) all of the notes went to PIERs holders and whatever other small percent of other claimants in current tranche.

Happy to help; I've been following this since WMI filed bankruptcy many years ago. There are a lot of moving parts and it is certainly a complex puzzle.

Let me clarify a few points.

1.) LT should be able to pay most if not all of the remaining 65%. I agree with this statement; when is the question.
2.) WMIH and the LT are completely separate. They do not share obligations or assets in any way. Think of the notes as an asset; the LT distributed the asset to its claimants; they have nothing left to do with notes. WMIH would have paid the note holders directly, nothing would have flowed back through the LT when we received cash earlier this month.
3.) If there is residual value in WMMRC after the notes are extinguished that value will stay with WMIH. The benefit in this case is only the current shareholders of WMIH.
4.) As a note holder earning 13% interest I'm in no particular hurry to have WMIH pay off the remaining balance; except taking too long may erode value and the ability to pay off the balance. Much less of a concern now that 98% of the senior notes are paid.
5.) As a shareholder in WMIH (I too hold shares) we want WMIH to payoff the balance of the notes as quickly as possible to extinguish the interest expense and hopefully maintain a strong balance sheet in WMMRC - or at least some value!

WMIH has the NOLs, and hedgefunds cash and line of credit facility.

WMIH also has WMMRC which is in run-off mode; but it is still an active business. In order for the LT to capture the value of WMMRC and not have to administrate this business, WMIH kept WMMRC as an operating sub (in run-off mode). The notes were a way to "Strip" the value from WMIH and provide the value to the LT and ultimately in this case to the WAHUQ shareholders.

The liquidating trust collected the interest on the notes and held them until such time as they were allowed under the terms of the POR to distribute the notes. They tried to sell the notes (which I was personally opposed to) in order to generate cash and make their lives "easier" but the additional interest and value that had accrued to the notes would have been lost to those of us holding wahuq claims.

Once the LT distributed the notes to WAHUQ claimants the LTI was reduced by the face amount of the notes. This left the "65%" of the WAHUQ claim remaining as an amount owed by the LT. Thus any additional amounts collected by the trust will be distributed to WAHUQ claimants until the claim is paid in full.

Meanwhile, WMMRC has disposed of some assets and extinguished the related insurance claims in their run-off business. That was what allowed WMMRC to issue a dividend to WMIH to retire a good portion of the notes now held by WAHUQ claimants. These notes are assets and a liability of WMIH (although non-recources to the extent that WMMRC is unable to repay them) but a liability of WMIH none-the-less. So all note proceeds come to note holders directly from WMIH.

All WMIH profits will accrue to the benefit of the WMIH shareholders. Additional cash dividends from WMMRC to WMIH will be used to retire the remaining notes held by WAHUQ claimants.

I shouldn't bother to reply but I can't help myself.

Thanks for the laugh. I still can't believe the information I find on this board sometimes. I've been following this from the beginning have have read many many statements and court hearing documents. I've been posting on this board for 5 years now (just not often.) And no, I'm not spreading disinformation.

That is true; they will receive 75% and commons will receive 25% of all remaining amounts that reach the final tranche. And these amounts are not capped. Thus there will be no amount after them.

And by current claims in my earlier post I was referring to the employee claims and WAHUQ claims. Nothing else has been issued a LT Interest as of yet. And they won't unless and until the final tranche is reached.

I love the "Charade Parade Reality" statement!

And you speak the truth:
"simple, there is "no escrow recovery" coming (of anything other than minutiae)."

As I just mentioned in the other post; WMILT sources of cash for distribution to escrow shares are only:
1.) reducing/settling and denying existing employee claims.
2.) Tax refunds collected
3.) D&O Insurance payouts (which is starting to look like a long-shot).

I believe there will be a couple of drops max from the waterfall that reach the final tranche. That's it.

Now back to WMIH! That's the real recovery for preferred and common shareholders.

Those were used to pay the credits at the time the POR was accepted to prevent huge amounts of interest from continuing to accrue.

If there was reality to those numbers they would be listed in the WMILT monthly statements as an asset.

The only things you can expect to still come from the WMILT are all disclosed on their monthly statements.

Cash will come from: disallowed claims, collected Tax refunds and possibly from 3rd party D&O insurance claims. And that's it. We had hoped for a little more from the 3rd party claims but that was a big zero. They have already released most of the reserve to pay for legal to pursue those claims because they have determined there was not a net gain from pursuing them.

And another correction to hopefully help quell some of the confusion here:

You said:

"Per the below it appears we got our RONotes paid by WMIH as WMILT paid the money to WMIH which sent the money to our brokerages?"

Once WMILT distributed the notes it was not involved in the recent payout to redeem our notes. That cash came directly from WMIH to our brokers (after WMMRC paid a dividend to WMIH).

WMILT and WMIH (Newco) are for all intents completely separate; especially now that the notes are distributed.

EI, you have a pretty good grasp of the situation but I must correct your statement:

"Once all of the claims are paid, WMILT assets revert back to the company."

Unless I'm missing context of which you speak - all claims include the final tranche which does not have a cap on it. Other than a small percent WMIH (Newco) (Is this the "company" you refer to you?) will only receive a very small amount. Excess assets after current claims are paid go to holders of old WAMPQ, WAMKQ or WAMUQ.

There is a lot of confusion in the last couple of posts; so I'll try and explain as best I can.

1.) WMILT - created from the old WMI had notes from WMIH (Newco). These notes were distributed to WAHUQ to partially pay off our claims against WMILT.
2.) The Reinsurance business is in run-off status and is in a sub of WMIH (Newco). There are notes (non-recourse to WMIH if sub does not have enough assets to pay-off) which were roughly equivalent to the expected value of the remaining reinsurance business. Since the mortgage and real estate market has rebounded there is likely residual value that will be left in the sub after the notes are completely paid off. This remaining value will remain with WMIH, (Newco). Thus it is Newco that benefits by extinguishing these high interest rate notes.
3.) Any remaining assets in WMILT after claims are denied, settled or additional amounts "found"; collected from tax refunds or D&O insurance policies will only go into WMILT to pay off claims. Any additional amounts beyond the remaining amount owed to WAHUQ holders will accrue to the remaining escrow shares not to WMIH (Newco). (I believe there is a small amount in an intermediary tranche but not significant to this discussion.)
4.) During last tranche of payouts (along with escrow shares for both preferred and common shares) I believe there is 2.5% allocation to WMIH (Newco) but I'm going on memory. There is no cap on any of the remaining parties in the final tranche and WMIH (Newco) would only receive the 2.5% of whatever the amount.

5.) The statement any excess assets go to WMIH would only pertain to excess assets in their sub after the notes are paid off. These same notes that we all received substantial payoff on during the past couple of weeks. I had about 99% of my senior notes redeemed and none of my Junior notes redeemed.

I'm with Scottrade and I just called them today. After some searching around he indicated they haven't allocated the "Lottery" to individual level yet but of the total amount Scottrade clients Scottrade was going to receive 97% of total SR bond amount to redeem at the individual account level. I may not have any more info until July 1st.

Or Negative $10B goodwill in this case for JPM (after writing down the loans to zero)! Don't see that very often.

I concur on both points td.

Scottrade has fixed my account; reversing interest previously paid on JR note; replacing it with PIK notes. Now I have cash paid for interest on Sr notes. Both payment amounts are at 1/4 of the 13% rate, as I expected.

And yes, the amounts showing in our account correlate to a $1 par value. However, when looking at quotes you should still see them quoted on a $100 par value equivalent.

I received my 13% quarterly interest on my junior bonds but not on my Senior bonds. I'm having my local Scottrade branch guys hunt down expected payment date on my Senior bonds.

I have gotten to know my local Scottrade crew pretty well over the past several years. Since these are in my Roth IRA I always have to check up on them. My branch guys recently sent me the LTI statement showing the payment of the notes (since the statements go to Scottrade based on my holding in my Roth) and they have found me many answers over the years.

I'm not a lawyer but I am an accountant and I read each of the Liquidating Trust's quarterly statements with interest. (Looking forward to the next one in another month.)

There are currently enough assets available (just not liquid) to cover 85% of the PIERs stipulated face amount of 10.xx. (tax refund and liquidating notes.) The continued reduction in disputed employee claims I'm confident will cover the remaining balance of the LTI's pertaining to PIERs.

Also, to quote the latest quarterly report:
"Liquidating Trust Interests (LTI) are not issued to holders of subordinated claims and equity interest. Additional LTI's will only be issued to holders of subordinated claims and equity interests if proceeds exceed the face amounts issued to current LTI holders." P16 Note 1.)

And PIERS have already received their LTI's - now it's just a matter of when the cash will become available.

Latest quarterly report was out yesterday. There will be no distribution in February. There is a hearing for the judge to consider the sale of the Notes to raise cash.

According to the quarterly statement, the Piers in traunche 4 are indeed up next. Cash is set aside for all remaining disputed claims.

There are four main sources of cash/assets/potential assets to distribute to holders of LTI shares:
1.) WMRC Notes (motion to sell notes instead of distribute is in March)
2.) Tax refunds (currently still under dispute with the states)
3.) Disputed claims being reduced (how much is obviously unknown)
4.) D&O insurance claims, law suites filed and progressing.

It appears the the GS law suite has been dismissed as likely unprofitable and most other 3rd party law suites are also unlikely. Hopefully we get a good result on the D&O insurance suites against officers and such.

Don,

You are close. Yes, certain creditors could have chosen the run-off notes; (and some did) but not instead of WMIH stock - instead of waiting for cash.

So it didn't necessarily enrich the trust; unless the interest earned is actually paid to the trust and not sold to a large buyer at a discount.

Yeah, I hope they just distribute them too!

However, this seems unlikely after the Trust's request for approval to sell them. I wish I'd had time to object.

Payout in Feb was based on statement that Runoff notes would be distributed to PIERS holders. That was before motion to sell runoff notes. So I can only presume that a postponed hearing on request to sell runoff notes indicates that they are not intending to distribute them as earlier indicated.

Just more monkey business.

My calculation on amount available from RON's will be $4-5 per old WAHUQ (maybe 6 can't remember). This was announced as payable in February 2014 (coming soon!)

The rest of our funds will have to wait for more claims to be resolved (large contingency fund) and/or collection of tax refund (not sure what the hold up is on this).

Of course any litigation recoveries also help pay off H's next!


Next tranche for payments after H's are some outstanding claims against the estate filed late, etc. No idea how much this will be; Marta is in here I believe but this should be dismissed once and for all when it is fully addressed. After that Preferred and Common share 75-25 prorata or whatever was agreed upon (I can't remember for sure mush brain lately).

Tell me you don't think this is coming into the estate. This has zero effect on our case. These funds will go into the FDIC-R account to pay any claims against them. It unfortunately won't be headed into UBBK accounts.