Lovin' it !
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Don't forget about more than a half a billion in post-petition interest that needs to be paid to the bondholders.
Also, when all is said and done, WMI will end up getting less of the tax returns than they currently think they will get. WMI is not entitled to WMB's NOLs, and just because the FDIC doesn't want JPM to get the refunds, that certainly doesn't mean that WMI will get "JPM's" portion.
Preferred holders will not be happy with the "distribution" that is coming their way. LOL
Eligible claims in Tranches will be paid in order with Tranche 1 claims receiving disbursements first and
Tranche 5 claims receiving disbursements last. Tranche 1 eligible claims must be satisfied in full prior to
Tranche 2 eligible claims receiving disbursements and so forth, except with respect to the distribution of
equity in the Reorganized WMI which is not subject to absolute priority.
Within each tranche eligible claims share pro rata based on size of claim. No percentage recovery for an
eligible claim will be higher than another percentage recovery for an eligible claim within the same Tranche,
and all eligible claims within the Tranche will be fully satisfied concurrently, except with respect to the initial
distribution of Reorganized WMI. However, the percentage recovery of the Subordinated Notes, who will
receive the stock of Reorganized WMI, will be adjusted in subsequent distributions to ensure recovery
percentages across Tranche 2 are the same for all creditors in that tranche.
[img][/img]
Washington Mutual, Inc. Files Plan of Reorganization and Disclosure Statement
"SEATTLE, March 26 /PRNewswire-FirstCall/ -- Washington Mutual, Inc. (Pink Sheets: WAMUQ) ("WMI" or the "Company") today announced that it has filed a Plan of Reorganization (the "Plan") and Disclosure Statement (the "Disclosure Statement") with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Plan implements and incorporates the terms of the global settlement agreement (the "Settlement") reached among WMI, JPMorgan Chase Bank, N.A. (NYSE: JPM) ("JPMC") and the Federal Deposit Insurance Corporation ("FDIC"), which was announced to the Bankruptcy Court on March 12, 2010 and is set forth in the draft settlement agreement annexed to the Plan. The provisions of the proposed settlement agreement have been agreed to by WMI, JPMC and significant creditor groups of the Company. As of this date, the FDIC has not agreed to all of the provisions contained in the draft settlement agreement. However, discussions are ongoing among the parties and they are hopeful that such agreement will be obtained in the near future.
The Plan is supported by JPMC and significant creditor groups of the Company.
WMI today issued the following statement:
"WMI is pleased to have reached this important milestone in the Chapter 11 process. The proposed Plan will provide substantial recoveries for the Company's creditors and reflects WMI's diligent efforts over the last 18 months to maximize the value of the bankruptcy estate."
The Plan, under which the Settlement will be implemented, also contemplates, among other things:
# WMI will establish a liquidating trust to make distributions to creditors on
account of their allowed claims. In accordance with the terms of the Plan, the
trust will distribute funds in excess of approximately $7 billion, including
approximately $4 billion of previously disputed funds on deposit with JPMC.
# It is anticipated that the reorganized WMI will undertake a rights offering
pursuant to which certain creditors will receive a right to purchase newly
issued shares of reorganized WMI common stock. The reorganized WMI will retain
equity interests in WMI Investment Corp. and WM Mortgage Reinsurance Company.
# JPMC will assume certain liabilities related to benefit plans (including the
pension plan sponsored by WMI).
# The various litigations involving WMI, JPMC and FDIC will be stayed or
dismissed. In addition, JPMC and the FDIC (in its capacity as receiver of
Washington Mutual Bank and in its corporate capacity) will withdraw claims
against WMI's bankruptcy estate and the parties will exchange mutual releases.
# Preferred and common equity securities previously issued by WMI will be
cancelled.
WMI has requested that the Bankruptcy Court schedule a hearing on May 19, 2010 to consider approval of the Disclosure Statement. Following approval of the Disclosure Statement, WMI will ask the Bankruptcy Court to confirm the Plan by July 20, 2010.
The Disclosure Statement filed today contains historical information regarding WMI and certain of its affiliates, a description of proposed distributions to creditors, an analysis of the Plan's feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself.
WMI's Plan and Disclosure Statement are available at www.kccllc.net/wamu. The Plan is subject to confirmation by the Court. This press release is not intended as a solicitation for a vote on the Plan.
SOURCE Washington Mutual, Inc."
http://www.nasdaq.com//aspxcontent/newsstory.aspx?selected=WAMUQ&symbol=WAMUQ&textpath=20100326%5CACQPRN201003262228PR%5FNEWS%5FUSPR%5F%5F%5F%5F%5FNY77702%2Ehtm&cdtime=03%2F26%2F2010+10%3A28PM
" # Preferred and common equity securities previously issued by WMI will be cancelled . "
Washington Mutual, Inc. Files Plan of Reorganization and Disclosure Statement
"SEATTLE, March 26 /PRNewswire-FirstCall/ -- Washington Mutual, Inc. (Pink Sheets: WAMUQ) ("WMI" or the "Company") today announced that it has filed a Plan of Reorganization (the "Plan") and Disclosure Statement (the "Disclosure Statement") with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Plan implements and incorporates the terms of the global settlement agreement (the "Settlement") reached among WMI, JPMorgan Chase Bank, N.A. (NYSE: JPM) ("JPMC") and the Federal Deposit Insurance Corporation ("FDIC"), which was announced to the Bankruptcy Court on March 12, 2010 and is set forth in the draft settlement agreement annexed to the Plan. The provisions of the proposed settlement agreement have been agreed to by WMI, JPMC and significant creditor groups of the Company. As of this date, the FDIC has not agreed to all of the provisions contained in the draft settlement agreement. However, discussions are ongoing among the parties and they are hopeful that such agreement will be obtained in the near future.
The Plan is supported by JPMC and significant creditor groups of the Company.
WMI today issued the following statement:
"WMI is pleased to have reached this important milestone in the Chapter 11 process. The proposed Plan will provide substantial recoveries for the Company's creditors and reflects WMI's diligent efforts over the last 18 months to maximize the value of the bankruptcy estate."
The Plan, under which the Settlement will be implemented, also contemplates, among other things:
# WMI will establish a liquidating trust to make distributions to creditors on
account of their allowed claims. In accordance with the terms of the Plan, the
trust will distribute funds in excess of approximately $7 billion, including
approximately $4 billion of previously disputed funds on deposit with JPMC.
# It is anticipated that the reorganized WMI will undertake a rights offering
pursuant to which certain creditors will receive a right to purchase newly
issued shares of reorganized WMI common stock. The reorganized WMI will retain
equity interests in WMI Investment Corp. and WM Mortgage Reinsurance Company.
# JPMC will assume certain liabilities related to benefit plans (including the
pension plan sponsored by WMI).
# The various litigations involving WMI, JPMC and FDIC will be stayed or
dismissed. In addition, JPMC and the FDIC (in its capacity as receiver of
Washington Mutual Bank and in its corporate capacity) will withdraw claims
against WMI's bankruptcy estate and the parties will exchange mutual releases.
# Preferred and common equity securities previously issued by WMI will be
cancelled.
WMI has requested that the Bankruptcy Court schedule a hearing on May 19, 2010 to consider approval of the Disclosure Statement. Following approval of the Disclosure Statement, WMI will ask the Bankruptcy Court to confirm the Plan by July 20, 2010.
The Disclosure Statement filed today contains historical information regarding WMI and certain of its affiliates, a description of proposed distributions to creditors, an analysis of the Plan's feasibility, as well as many of the technical matters required for the solicitation process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself.
WMI's Plan and Disclosure Statement are available at www.kccllc.net/wamu. The Plan is subject to confirmation by the Court. This press release is not intended as a solicitation for a vote on the Plan.
SOURCE Washington Mutual, Inc."
http://www.nasdaq.com//aspxcontent/newsstory.aspx?selected=WAMUQ&symbol=WAMUQ&textpath=20100326%5CACQPRN201003262228PR%5FNEWS%5FUSPR%5F%5F%5F%5F%5FNY77702%2Ehtm&cdtime=03%2F26%2F2010+10%3A28PM
# Preferred and common equity securities previously issued by WMI will be
cancelled.[/b]
"
Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code
http://www.kccllc.net/documents/0812229/0812229100326000000000007.pdf
DISCLOSURE STATEMENT FOR THE JOINT
PLAN OF AFFILIATED DEBTORS PURSUANT TO
CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE
http://www.kccllc.net/documents/0812229/0812229100326000000000009.pdf
Here is the low-down.
"PROVISION FOR TREATMENT OF COMMON EQUITY INTERESTS (CLASS 21)
25.1 Cancellation of Common Equity Interests: Holders of Common Equity
Interests shall receive no distribution under the Plan. On the Effective Date, all Common Equity
Interests shall be deemed extinguished and the certificates and all other documents representing
such Equity Interests shall be deemed cancelled and of no force and effect."
No surprise there.
There is about $600 million in post-petition interest from only exhibits a,b, and c alone, which is a never-talked-about hurdle that doesn't show up on the A/L schedule.
In the event that all Allowed
Claims and Postpetition Interest Claims in respect of Allowed Claims are paid in full (including
with respect to Allowed Subordinated Claims),
the Liquidating Trust Interests shall be
redistributed, and holders of Preferred Equity Interests shall be entitled to receive their Pro Rata
Share of Liquidating Trust Interests, to be shared on a pari passu basis with holders of the REIT
Series.
It also looks like part of the wahuq's distribution includes a rights offering. Hopefully those people didn't literally go all in.
Several other classes are impaired.
30.2 Impaired Classes Entitled to Vote on Plan: The Claims and Equity
Interests in Classes 2, 3, 12, and 14 through 19 are impaired and receiving distributions pursuant
to the Plan, and are therefore entitled to vote to accept or reject the Plan.
4.2 Class 2 Senior Notes Claims
4.3 Class 3 Senior Subordinated Notes Claims
4.12 Class 12 General Unsecured Claims
4.14 Class 14 CCB-1 Guarantees Claims
4.15 Class 15 CCB-2 Guarantees Claims
4.16 Class 16 PIERS Claims
4.17 Class 17 Subordinated Claims
4.18 Class 18 REIT Series
4.19 Class 19 Preferred Equity Interests
Disclosure Statement for the Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code
http://www.kccllc.net/documents/0812229/0812229100326000000000009.pdf
Disclosure Statement for the Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code
http://www.kccllc.net/documents/0812229/0812229100326000000000009.pdf
Too many classes are impaired for preferreds to get the supposed 10-20% recovery that Starke referenced. Starke is a snake.
The Ks and the Ps are in the same class as each other, and they are supposed to be "the same" as "the preferred securities", however, the REIT holders are getting $50 M in value from JPM (separate from what WMI is giving this class (which is nothing) . Before WMI will "give" anything to the preferred classes, all other classes of claims that are senior to the preferreds need to see 100 cents on the dollare which is why neither class or preferred will get anything from WMI.
All classes are the same but not really imo.
ARTICLE XXII
PROVISION FOR TREATMENT OF REIT SERIES (CLASS 18)
22.1 Treatment of REIT Series: In the event that all Allowed Claims and
Postpetition Interest Claims in respect of Allowed Claims are paid in full (including with respect
to Allowed Subordinated Claims), the Liquidating Trust Interests shall be redistributed, and
holders of the REIT Series shall be entitled to receive their Pro Rata Share of Liquidating Trust
Interests, to be shared on a pari passu basis with holders of Preferred Equity Interests. In
addition, and separate and district from the distribution to be provided to holders of the REIT
Series from the Debtors, pursuant to the Global Settlement Agreement, and in exchange for the releases set forth in the Global Settlement Agreement and in Article XLII herein, on the
Effective Date, JPMC shall pay or transfer to the Disbursing Agent for distribution to each
holder of a REIT Series such holder’s Pro Rata Share of (i) Fifty Million Dollars
($50,000,000.00) Cash or (ii) at the election of JPMC, shares of common stock of JPMC having
a value as of the Effective Date in the amount of Fifty Million Dollars ($50,000,000.00).
22.2 Cancellation of REIT Series: Notwithstanding the provisions of Section
22.1 hereof, on the Effective Date, all REIT Series shall be deemed extinguished and the
certificates and all other documents representing such Equity Interests shall be deemed cancelled
and of no force and effect.
10-20% of face is a pipedream just like almost everything else that has been spewed lately, and the preferreds are definitely getting cancelled.
23.2 Cancellation of Preferred Equity Interests: Notwithstanding the
provisions of Section 23.1 hereof, on the Effective Date, all Preferred Equity Interests shall be
deemed extinguished and the certificates and all other documents representing such Equity
Interests shall be deemed cancelled and of no force and effect.
Do you really think all claims senior to the preferreds are going to get paid at 100 cents on the dollar?????
PROVISION FOR TREATMENT OF PREFERRED EQUITY INTERESTS (CLASS 19)
23.1 Treatment of Preferred Equity Interests: In the event that all Allowed
Claims and Postpetition Interest Claims in respect of Allowed Claims are paid in full (including
with respect to Allowed Subordinated Claims), the Liquidating Trust Interests shall be
redistributed, and holders of Preferred Equity Interests shall be entitled to receive their Pro Rata
Share of Liquidating Trust Interests, to be shared on a pari passu basis with holders of the REIT
30.2 Impaired Classes Entitled to Vote on Plan: The Claims and Equity
Interests in Classes 2, 3, 12, and 14 through 19 are impaired and receiving distributions pursuant
to the Plan, and are therefore entitled to vote to accept or reject the Plan.
If classes 2, 3, and 14 through 19 are impaired, then class 19 is completely done for.
ARTICLE XXIII
PROVISION FOR TREATMENT OF PREFERRED EQUITY INTERESTS (CLASS 19)
23.1 Treatment of Preferred Equity Interests: In the event that all Allowed
Claims and Postpetition Interest Claims in respect of Allowed Claims are paid in full (including
with respect to Allowed Subordinated Claims), the Liquidating Trust Interests shall be
redistributed, and holders of Preferred Equity Interests shall be entitled to receive their Pro Rata
Share of Liquidating Trust Interests, to be shared on a pari passu basis with holders of the REIT
Series.
23.2 Cancellation of Preferred Equity Interests: Notwithstanding the
provisions of Section 23.1 hereof, on the Effective Date, all Preferred Equity Interests shall be
deemed extinguished and the certificates and all other documents representing such Equity
Interests shall be deemed cancelled and of no force and effect.
class 19 = TOAST
POR = Game over for equity
The judge will sign-off on the plan because the only thing (since the EC doesn't really count) standing between approval and execution of the plan is the WMB bondholder claims, however, their claims don't belong in bankruptcy court. The WMB fights will continue on for a silly number of years, and WMI will live on while equity dies.
30.3 Equity Interests Deemed to Reject: The Equity Interests in Classes 20
and 21 are not entitled to receive any distribution or retain their Equity Interests pursuant to the
Plan, are deemed to reject the Plan, and are not entitled to accept or reject the Plan, pursuant to
section 1126(g) of the Bankruptcy Code.
32.7 Issuance of Reorganized Common Stock and Additional Common
Stock: The issuance by Reorganized WMI of the Reorganized Common Stock and Additional
Common Stock on the Effective Date is hereby authorized without the need for any further
corporate action and without any further action by holders of Claims or Equity Interests.
41.6 Shareholders’ Agreement: Reorganized WMI and its shareholders (and
their shares of Reorganized Common Stock and Additional Common Stock) shall be subject to,
and bound by, a shareholders’ agreement, which shall in form and substance be reasonably
satisfactory to the Backstop Purchasers and the Creditors’ Committee.
42.17 Withdrawal of Equity Committee Adversary Proceeding: On the
Effective Date, the Equity Committee Adversary Proceeding shall be deemed withdrawn, with
prejudice, without any further action.
Where are all of the self-proclaimed bankruptcy lawyers now???????
Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code
http://www.kccllc.net/documents/0812229/0812229100326000000000007.pdf
ARTICLE XXV
PROVISION FOR TREATMENT OF COMMON EQUITY INTERESTS (CLASS 21)
"25.1 Cancellation of Common Equity Interests: Holders of Common Equity
Interests shall receive no distribution under the Plan. On the Effective Date, all Common Equity
Interests shall be deemed extinguished and the certificates and all other documents representing
such Equity Interests shall be deemed cancelled and of no force and effect."
A lot of people are going to see a lot of market value disappear from their accounts.
Equity will now be forced to watch the creditors eat their cake.
tick tock
I see ZLC is holding 2.38 right now. Maybe I'll get some.
I'm out of BQI for now. I had to sell into the strength. It will either go up to .92 (now that I'm out), or it might sink fast to the low .70s again. I'll be watching it for -re-entry.
I added more DARA this morning.
Gotta go.........
Just took a position in DARA at .56 and will hopefully get a nice pop soon. They have earnings expected out on March 3rd with estimates of a .02/share loss.
I'm watching ACAS and might short it. Thye had Q4 earnings of .07/diluted share , it is trading at too high of multiples imo.
It should drop quick enough for a quick short, and I also think it would be a good longer term short.
I'm still holding all of the BQI I bought, in at an average just over .75 , when it runs it's gonna run hard, and I'm planning on adding a trading position on it once I have some more time.
Hope you are well, and another nice day of volatile movement by JASO as usual. hahaha
Hope you are well!
"settlement is near" has been SPEWED for the last 16 months. LOL
Do you even know what percentage of the NOL's WMI is entitled to???????? Hint: It is a very tiny percentage.
"A=L per the last MOR!"
That is a blatent LIE.
Even if the MOR did show A =L, that would mean there is exactly ZERO equity value.
The court documents do not prove otherwise, and if they did, the preferreds would be trading near face value and the commons would be trading in the dollar range.
The hilarious talk of "mm manipulation" is complete ridiculousness, and the FACT is that there simply aren't enough interested buyers. Look at the volume AND the dollar volume. They are both anemic and pathetic.
You will get absolutely nothing unless you sell your shares. If you hold until the end, you will lose it all.
It could not be proven that WMI is hopelessly insolvent (which is all that was needed for the EC to stay), however, it could not be proven that WMI is not hopelessly insolvent (which wasn't needed).
Everybody's @$$e$ are now covered (so nobody can accuse the UST for not trying) and the little man that goes by the name of Gregory Cross will be sitting at the table in his little chair watching the creditors eating their cake.
On March 26th, the re-org plan will be filed that will not include a distribution to the equity holders, and there can't be any more delays on the date by which acceptances to the plan must be made.
tick-tock
The offer that was rejected was when there were far less shares outstanding AND when WMI had a bank.
There will be no offer to buy WMI, there will be no share swap from JPM, and the only cash you will see for your shares of wamuq will come from selling them which will have to happen before the shares are cancelled.
The references to "grand jury" are related to litigation that started even before the receivership/bankruptcy and involves certain WMI executives and their lending practices.
Too many people focus on the money that went downstream from WMI to WMB, but they are quick to forget the billions upon billions that went upstream from WMB to WMI along with the timing of the upstream transfers.
Where is TPG?????? We know they are not on the EC. LOL
Not wrong. WMB money (that was paid to WMI in the form of dividends(which very well could be coming back to WMB) was used to buy-back shares at a time when they should not have been using the capital for such activities. More will come out on this, or maybe it won't come out, but nonetheless, there is more than meets the eye. However, most people don't have the mental capacity to understand what is really going on. Oh well, it will be their loss.
One more time, WMI is not buying back any shares.
Check the laws regarding this issue and then get back to me.
WMI does not get WMB's NOLs. eom
If the company is increasing/has increased the A/S, then the technical "bottom" won't prove to be much of a "bottom".
It's not a "try", and I definitely wouldn't call the action in the last month a "rally" . LOL
The reference to the ASR is related to accounting for the share buyback program from years past. WMI is not buying back their shares presently.
"WMB will use a portion of the proceeds it receives in connection with the offering for general corporate purposes which may include dividend payments to its ultimate parent, WMI. In turn, WMI intends to use the proceeds of any such dividend payments to repurchase shares of its common stock and for general corporate purposes. Such repurchases will be effected in accordance with WMI’s existing common stock repurchase program, which may include accelerated share repurchase."
http://www.secinfo.com/dsvR3.v1Zg.htm
"On Jan. 3, 2007, the company entered into an accelerated share repurchaseagreement with a dealer pursuant to which it repurchased $2.7 billion of its common stock."
http://www.streetinsider.com/Dividends/Washington+Mutual+(WM)+Reports+Q4+EPS+of+$1.10%3B+Accelerated+Buyback,+Raises+Dividend/1503942.html
Nothing like putting spin on things and trying to make them into something they are not.
Just wait until the next up day and then play it from the short-side. That gap will fill eventually and it will go lower than that as well. Short it and then wait for the gap to fill. It is only a matter of time.
I have been keeping up with it and am waiting for the price to continue to go down before I buy back in. Pretty bearish today by closing at the LOD.
I have no doubt that JBII will indeed be a complete monster in the long-term, but I'm not getting back in quite yet.
The price will be going down .
Check it out.
11.3 Million of the 16.2 million shares traded today were shorts.
http://regsho.finra.org/FORFshvol20100218.txt
I went all-in on BQI just over .70 . I have my 35 trades in for this quarter to keep my free level 2 on ETrade so I figured I'd average down and wait for the move. The downward move is overdone imo and I think there is going to be a strong move within a week or so. We'll see what kind of move it turns out to be.