Linda is biotch...! LOLz JayKay
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Just looked at the chart. It shows accum/dist dropped and money flow up. Translation: MM shorting and while there are buyers buying. Also shows in the volume spike.
As I type this post, my right palm is itching. $$$
imo of course.
Thanks for providing where the Class 12 verbiage came from. eom
Yes, I agree, all warrants (except the pending Dime ruling). imo/eom
If you are referring to the H warrants, yes, they are cancelled. imo/eom
During the time, it was an option. Cash out or shares or something to that effect, but to day is diff. We should wait and see. imo/eom
It had something to do with H's at the time, when they were suppose to get the new co. Said something to the effect: Shares are to be worth $25 or issued at $25. Maybe someone will remember more clearly.
Keep in mind that this was way before. Today is different.
imo
It was believed to be $25 ($2X) per share, written on one of the pleadings/POR/DS, if memory serves me right. imo/eom
Yes, "executory", it was a typo, LOL. Only someone in the legal field would have caught that!
Well, it all started when DIMEQ was classed as 22 in the POR. Then they filed an adversary proceeding against debtor. They had nothing to lose, but all to gain. I do not know how class 12 came up (could be a clause in amended POR) or if it was prayed by DIMEQ in their pleadings.
Debtor and dimeq went to court ordered mediation. It was fruitless or settlement was not enough for DIMEQ to accept.
Now, all of the sudden Rosie put in clause about class 18 in their pleadings, rather that class 12/class 22, if judge finds debtor breach their agreement.
So as of today, it looks like "all or nothing" for them since we are now waiting on a ruling any day now (now really all or nothing, but it depends on the class they end up in).
I do not know the exact time line, but I assume this is pretty close. Note, I am not really following the DIMEQ case closely.
imo
Under normal circumstances, I would categorized DIMEq as a warrant and void as an excretory contract, however, this one is different in which it was attached to litigation proceeds. Litigation tracking warrant was a bad name for these securities.
DIMEq adversary proceeding is derived from a alleged breach of contract that resulted in a claim against the WMI estate.
That claim, if prevailed against WMI, will categorized as a creditor (Class 12 or 18). Rosie is saying subordinate the claim, ie Class 18.
There is no ambiguity. You can either be equity or debt/creditor.
My post was in regards to a settlement.
I agree, if there was not enough to reach commons through litigation or a regular straight forward plan, then commons get zilch, however, it is expected that there will be a settlement and common will be part of it. That is the consensus. Roise has even stated publicly that he wanted commons to receive a distribution (but we all know it was for releases).
I do agree and have voiced it on a few occasions, that I am not very fond of Willingham and I wanted him off the committee because of a conflict of interest.
imo
While all settlements are not the same in every case, imo, absolute priority is a template that should be used, however, not strictly adhered to. Example: Not enough money to flow to commons, however, I am sure preferreds would agree on a fair amount going to commons from preferred' share.
We know SNH is in settlement talks to redistribute their funds to EC (as a group), but it is up to the EC to divide amongst the equity classes. We can only hope absolute priority is adhered to.
The variable we have, imo, is Willingham since he owns only commons and what the other EC board members are made up of, however, Willingham is still going to be compensated (via Trustee Lit trust/Liq Trust, etc.) it he takes the either litigation route or settlement route.
If the EC (Willingham) unfairly distributes the $$, I am sure there will be objections to the new proposed reorg plan from either TPS, Preferreds, Dimeq (if the are class 22), etc.
This is assuming there is a settlement of course.
IMO of course.
My reliance was on this: http://www.sidedraught.com/stocks/WashingtonMutual/DIME-LTW/302.pdf
See Footnote No. 26, at page 80 (PDF 90):
Probably because it cited zero authority or case law. imo/eom
Dudebug:
Disallowance can only come from litigation, in which case, any funds from disallowance will flow in the order of the water fall of absolute priority. I agree with the other posts you saw.
My post was about settlement, a voluntary redistribution (nice word for disallownace) of SNHs funds. SHN's funds redistributed to their direction (to the EC) since it was their money they received from the waterfall. The settlement is mainly between SHN and EC. Using the BK model of absolute priority, the $$ stops at H's.
The DIMEq is a variable of where it is placed in the water fall (in a settlement).
* Class 12, they get paid. (above H)
* Class 18, they get shafted again (because waterfall won't reach them) or "go away money". The $337 reserved is redirected back into the water fall to H's to slow the H's burn rate. (Below H)
* Class 22, conversion to NEW common at a to be determined ratio. (Above Commons)
Or heck, they may not have a claim, but we will see and wait for Walrath's ruling)
Don't anyone trade on what I post.
imo
LOL We all know Chiron. eom
I think that is why is has bodyguards with him in court. LOL eom
Here is my other theory on the cover of shorts through DIMEQ:
There is no way to convert DIMEQ to commons because you cannot execute a "warrant" for new shares while in BK, plus, with the ownership restriction in place by the court in favor of NOLs, there is no way to convert to commons without upsetting the 5% (%4.x) change of ownership rule inposed by the IRS to maintain NOL carry forwards.
How does Rosie get around diluting commons (Assuming class 22)? He will use a ratio of conversion of old securities (DIMEQ, Commons, and preferreds, TPS w/ their own ratios, some better than the other, but preferreds are equal)) to new commons securities. So, IMO, you can't use DIMEQ to convert to commons to cover any shorts in WAMUQ.
Rosie accomplishes the same thing, but just took a different avenue.
When he brought up the Class 18, is what got me thinking about it. One does NOT propose something without an intent.
My opinion of course.
Too many revisions, there is really more to it, I have to get back to work
Here is a very interesting theory in which why Rosie included a clause (in
one of the recent pleadings) in which DIMEQ to be in Class 18. It was initially because DIMEQ was going to be Class 12 OR Class 22 ONLY (cant remember which Class was directly above commons).
Rosie still intends to screw DIMEQ and here is how.
Under a settlement, H's is where the distribution stops (Absolute Priority). Now if Rosie is successful in putting DIMEQ in Class 18 (under H), the distribution does not reach there (below H) anyways because of the burn rate on the estate and no funds to distribute, then DIMEQ is still unpaid.
Now, under this settlement, it is, as we all presume, the SNHs are the ones giving up THEIR money (Absolute Priority) to equity, not the Estates. So in this scenario, all classes get paid except DIMEQ because distribution stops at H's and SNH give up "whatever" to equity.
If Dimeq were to be in Class 22, then I assume commons get less from settlement, BUT EC wants more to compensate their dilution. This is where mediation parties are waiting on a DIMEQ ruling to see how more has to come from SHNs, ie $337 million.
In other words, Rosie wants DIMEQ to be in Class 18, below H where distribution does not even reach. If not 18, then Class 22.
In the end, DIMEQ might end up with "nuisance" money if in Class 18. If in Class 22, with commons. I doubt, class 12. Rosie is trying to subordinate.
IMO, speculators might think Class 18 is a win, but if you look at the totality of circumstance, it may not be a true win if distribution stops at H's. Class 12 would be a true win, imo.
I must say, Rosie is very crafty and a genius, we (as equity) are just on opposite sides.
Strictly a thought and speculation.
She (Bopfan) is a bankruptcy attorney. eom
Here is a Bopfan post (approx. 12:15 PST/3:15 EST, November 30, 2011) for all you fans out there:
Agree, settlement this year 2011:
We all know that this is especially true for Willingham since he "only has commons" and that is the ONLY why commons will see anything.
Does Willingham take the settlement which will give commons something, since he only owns commons?
Does Willingham pursue litigation and send commons down the river, including his common holding (assuming GSA in effect)?
Bottom line:
Litigation = Absolute priority strictly enforced and commons zero'ed out (assuming GSA in effect).
Settlement = Commons gets something on the backs of preferreds.
Either way he decides, Willingham is covered because he will be on the Trustee Board and Litigation Trust, etc. drawing income in the millions.
He makes the most money on a Settlement scenario. So settlement it is.
We know that a "bird in the hand is better than 2 in the bush."
imo
"I wasn't going to reply to you but..."
Let me know when you take off your "rose colored" glasses and realized your investment here vanished. Oh wait, you can always sell at BID, assuming there is one.
Have a nice night thinking about it.
imo
WAMUQ is f**ed if there is no settlement. LEHNQ is screwed period. Take off your "rose colored" glasses and face reality. Have a nice day. imo
I corrected your post for you:
Wow, vodoo, this is probably the most sane post of yours. Congrats. Ha ha
99.99999999...% totally screwed, yes. imo/eom
Thanks for the information. eom
Thanks Mordi. eom
Volume straight upshot up along with Accum/dist & money flow (today's chart).
Anyone have lvl II who can tell who is on BID and if they are an old player or new player coming on?
TIA
I agree, if you look at the accum/dit chart along with money flow for today (not the daily chart), it looks like the retail sold while the MM bought. Accum/Dist went straight up.
imo
I really have no idea since I really do not follow Dimeq much, but them being the ones who brought and financed the adversary proceeding, and then all of the sudden stop, makes you wonder.
At the time Debtors did NOT want to mediate with DImeq, but Walrath forced them into a mandatory mediation. At the end, mediation between them was fruitless.
Now, I do not know the timing between the mediation between debtors and Dimeq, or if they were related in Broadbill dismissing themselves from the adversary proceeding because something they found out from mediation.
So my thoughts are: Either the Debtors knows something and are very confident (despite them giving bad oral arguments in court and Walrath is a reader, NOT a listener), or Broadbill knows something and decided to dismiss themselves from the action.
Again, I do not follow dimez so this is all speculation on my part.
imo
I agree with all the delays in the past, but these delays now is better in the long run since we, as the EC, are part of the ones at the table this time.
Litigation will ruin everybody, especially the commons (assuming GSA remains intact) and the HFs.
imo
What is really interesting and I do not know why (and no one talks about), is the lead Plaintiff, Broadbill, gave up or otherwise no longer the Plaintiff. They were the ones (or major one) financing the adversary proceeding against the Debtors.
I do NOT know why or whether they found out "something" and found they were no longer interested in continuing the fight.
imo
Yes, I agree, however, this time we are tooooo close to a settlement to take a risk of being out of the market.
HF have a lot more to lose (in terms of reputation, run-off of their clients, investigations by SEC/DOJ, etc, third party lawsuits, etc. etc. etc.) going the litigation route. and they know it. They would effective file their own BK of their own firms.
I am sure every one knows, once they sell, that is when the settlement comes out.
All speculation of course.
Good night all.
imo
I concur! imo/eom
Yes, approx. $7.5 B (TPS included), however, hedgies also own preferreds, so we don't know if they will give up some as part of a settlement. imo
Off the top of my head, I believe the amount was/is $337 mil reserved. imo/eom