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Level II: bid; 5.86, ask 5.90
On OTS reports,You will notice it makes a specific point that WAMU was well capitalized.
http://files.ots.treas.gov/730021.pdf
On bottom of 2nd page: Maintaining capital- It pointed out: " Since december 2007, WMI infused $6.5 billion into WMB. WMB met the well captalized standards through the date of receivership."
Wamu filed Chapter 11 protection because:
Wamu needs B.K court to obtain its NOL benifit.
WaMu needs B.K court to recapture its $4.4B cash in JPM banks
Wamu needs B.K court to against any claim rised from the result of seizure of WMB.
filed chapter 11 is necessary step to consolidate its business and protects company assets being further taken away after the seizure of its banking units by FDIC. "
Mark Northrup, a partner with law firm Graham & Dunn in Seattle, who specializes in creditor-debtor relationships, says there’s no legal requirement that a company has to be insolvent to file a bankruptcy petition.
“I think they’re doing it because filing a bankruptcy is just the formal way to wind up your affairs,” Northrup says. “If they don’t file, there will be loose ends.”
http://www.bizjournals.com/austin/stories/2008/09/29/daily12.html
"Highly likely" is a
fuzzy term, whether you agree with it or not. Bill has provided a
clear example of how OTS should have come out with a quantification of
WaMu's liquidity. Nobody here has seen any numbers yet that support
OTS's claim. If they can provide these numbers (which I highly doubt),
they will have to disclose them in court. If they can't, they're all in
big trouble. Beyond this, even if WaMu did not meet the liquidity
thresholds, the sale value of WaMu is still a huge issue. For a well
capitalized bank, FDIC should have sold it for its real value at the
time - $10-12/share.
Every B.K stock has its own story, therefore, It's result will be different. It is not wise to have it compare to others without looking at its unique story.
below are some Good example B.K to cheer:
Northwest airline filed B.K listed assets: $14.35B, liabilities: $18B
http://fl1.findlaw.com/news.findlaw.com/hdocs/docs/nwa/nwa91405c11pet.pdf
But its preferred stock won and received 79 cents on the dollar on 05/04/07.
http://www.laborradio.org/node/5851
McLeodUSA Inc., file B.K listed $4.79 billion in assets and $4.56 billion of debts.
http://query.nytimes.com/gst/fullpage.html?res=9C0CE6DB173DF932A35751C0A9649C8B63
But all creditors and shareholders got paid.
http://www.isp-planet.com/cplanet/news/02feb2002/01mcleodusa.html
http://investor.hawaiianairlines.com/phoenix.zhtml?c=82818&p=irol-newsArticle&ID=775912&highlight=
http://findarticles.com/p/articles/mi_kmafp/is_/ai_n13272782
"Our shareholders keep their shares, which have increased in value. Our creditors get repaid in full. And Hawaiian employees will, for the first time, get wages and benefits as good or better than our competitors. For an airline that two years ago was losing money and had less than 20 million dollars in the bank, I think it's ...
Can Wamu shareholders keep their share? Yes, It is still possible.
We need to file lawsuit against OTS,FDIC and JPM.
http://www.wamurape.org/wamurape.aspx?g=posts&t=139
OTS report on WMB on sept 25.
You will notice it makes a specific point that WAMU was well capitalized.
http://files.ots.treas.gov/730021.pdf
On bottom of 2nd page: Maintaining capital- It pointed out: " Since december 2007, WMI infused $6.5 billion into WMB. WMB met the well captalized standards through the date of receivership."
on the third page: Deposit outflows- OTS used the word;" It was highly likely to be unable to pay its obligations and meet its operating liquidity needs."
How can OTS, a ferderal agency seized a 120yrs largest bank just merely based on its guessing. "highly likely"?
I'd like this preferred stock's dividend payment to be resumed, It is possible. If you had just 1000 shares of WamPQ, you could get paid for $77500/yr. about $6450/month.
hey, you and your wife can be retired and having vacation every day. LoL.
WamPQ up 23% at $8.00, only 17K volume.
Level II :
Yes, in whole piece, not to be claimed in small piece separately.
IRS changed the tax rules,just right before FDIC seized and JPM bought WMB, otherwise, Wamu would had sold the company easily in the higher price.
Wamu's B.k is unusual and very unique.
Wamu has 5 times assets more than its liabilities. There are no secured creditors, all are unsecured crditors with long term debts,no immediate debts and pressure to pay the bill,furthermore it has $4.4B in cash, cash is vital important for B.K companies. unlike most of B.K company files B.K for the reason of cash flow problem.
If creditors are confident that Wamu has sufficient capital to run business again without having pressure paying its debts, they likely willing to keep their safer role as lenders,instead of becoming investors. In B.K, debtor might be able to negotiate them to get even better term on debts. Therefor, Wamu's chapter 11 might come out a very few change that shareholders are still keep their shares and preferred stock resumes its dividend payment( that is $77.5/share dividend, if you owned 1000 share, you will get pay $77500/yr, you can retired), My opinion is that after Wamu completes and emerges from B.k, it could soon be bought out or merge with other financial institutions. Buyout will not ocurr during B.k processing period.
Unlike most of B.K companies,WaMu wasn’t insolvent to file B.K. It just like i said on last post:
"Because:
Wamu needs B.K court to obtain its NOL benifit.
WaMu needs B.K court to recapture its $4.4B cash in JPM banks
Wamu needs B.K court to against any claim rised from the result of seizure of WMB.
filed chapter 11 is necessary step to consolidate its business and protects company assets being further taken away after the seizure of its banking units by FDIC. "
Mark Northrup, a partner with law firm Graham & Dunn in Seattle, who specializes in creditor-debtor relationships, says there’s no legal requirement that a company has to be insolvent to file a bankruptcy petition.
“I think they’re doing it because filing a bankruptcy is just the formal way to wind up your affairs,” Northrup says. “If they don’t file, there will be loose ends.”
http://www.bizjournals.com/austin/stories/2008/09/29/daily12.html
http://findarticles.com/p/articles/mi_kmafp/is_/ai_n13272782
Wamu's B.k is unusual and very unique.
Wamu has 5 times assets more than its liabilities. There are no secured creditors, all are unsecured crditors with long term debts,no immediate debts and pressure to pay the bill,furthermore it has $4.4B in cash, cash is vital important for B.K companies. unlike most of B.K company files B.K for the reason of cash flow problem.
If creditors are confident that Wamu has sufficient capital to run business again without having pressure paying its debts, they likely willing to keep their safer role as lenders,instead of becoming investors. In B.K, debtor might be able to negotiate them to get even better term on debts. Therefor, Wamu's chapter 11 might come out a very few change that shareholders are still keep their shares and preferred stock resumes its dividend payment( that is $77.5/share dividend, if you owned 1000 share, you will get pay $77500/yr, you can retired), My opinion is that after Wamu completes and emerges from B.k, it could soon be bought out or merge with other financial institutions. Buyout will not ocurr during B.k processing period.
Unlike most of B.K companies,WaMu wasn’t insolvent to file B.K. It just like i said on last post:
"Because:
Wamu needs B.K court to obtain its NOL benifit.
WaMu needs B.K court to recapture its $4.4B cash in JPM banks
Wamu needs B.K court to against any claim rised from the result of seizure of WMB.
filed chapter 11 is necessary step to consolidate its business and protects company assets being further taken away after the seizure of its banking units by FDIC. "
Mark Northrup, a partner with law firm Graham & Dunn in Seattle, who specializes in creditor-debtor relationships, says there’s no legal requirement that a company has to be insolvent to file a bankruptcy petition.
“I think they’re doing it because filing a bankruptcy is just the formal way to wind up your affairs,” Northrup says. “If they don’t file, there will be loose ends.”
http://www.bizjournals.com/austin/stories/2008/09/29/daily12.html
http://findarticles.com/p/articles/mi_kmafp/is_/ai_n13272782
"WaMu filed for Chapter 11 bankruptcy in Delaware late Friday, listing $32.9 billion in assets and $8.2 billion in total debts. Technically, that means the holding company for the thrift wasn’t insolvent."
http://www.bizjournals.com/austin/stories/2008/09/29/daily12.html
Because:
Wamu needs B.K court to obtain its NOL benifit.
WaMu needs B.K court to recapture its $4.4B cash in JPM banks
Wamu needs B.K court to against any claim rised from the result of seizure of WMB.
filed chapter 11 is necessary step to consolidate its business and protects company assets being further taken away after the seizure of its banking units by FDIC.
Because:
Wamu needs B.K court to obtain its NOL benifit.
WaMu needs B.K court to recapture its $4.4B cash in JPM banks
Wamu needs B.K court to against any claim rised from the result of seizure of WMB.
filed chapter 11 is necessary step to consolidate its business and protects company assets being further taken away after the seizure of its banking units by FDIC.
many people here not quite understand the word " liquidation "in Bankruptcy means.
Any company filed Bankruptcy whether chapter 11 or chapter 7,both are under the Bankruptcy,are in the " liquidation " process. Its assets to be distributed to creditors and shareholders ratably in accordance with statutory priorities.
The different is:
Chapter 7 is in the liquidation to terminate its business. Therefor,the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors and shareholders with statutory priorities.
Chapter 11 is in the "liquidation" to refresh and continue its business, most of its assets will not be sold for cash. Therefor,the debtor revaluates its assets, distributes the value of assets to creditors and shareholders,instead of cash by the liquidtion preference.(Chapter 11 follows the same priority scheme as other bankruptcy chapters).
In chapter 11, Ownership of the debtor will be reallocated by the liquidation preference, the creditors becomes the owner of the newly reorganized company, Sometimes, if the business's debts exceed its assets,the B.K company's owners all end up without anything; all their rights and interests are ended. if assets exceed debts, Shareholders ownership will be reallocated by the liquidation preference. Holders of common stock don't receive corporate assets unless all preferred stockholders have been compensated (bond investors take priority over both common and preferred stockholders).
The debtor's assets are to be allocated by distributing shares of new stock of reorganized company at the completion of bankruptcy.
http://www.allbusiness.com/business-planning/business-structures-corporations-stock/3779142-1.html
Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time. After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be "confirmed" by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a liquidation under Chapter 7 or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to nonbankruptcy law in order to satisfy their claims.
Good example B.K to cheer:
Northwest airline filed B.K listed assets: $14.35B, liabilities: $18B
http://fl1.findlaw.com/news.findlaw.com/hdocs/docs/nwa/nwa91405c11pet.pdf
But its preferred stock won and received 79 cents on the dollar on 05/04/07.
http://www.laborradio.org/node/5851
McLeodUSA Inc., file B.K listed $4.79 billion in assets and $4.56 billion of debts.
http://query.nytimes.com/gst/fullpage.html?res=9C0CE6DB173DF932A35751C0A9649C8B63
But all creditors and shareholders got paid.
http://www.isp-planet.com/cplanet/news/02feb2002/01mcleodusa.html
You're right, but I see many people here not quite understand the word " liquidation "in Bankruptcy means.
Any company filed Bankruptcy whether chapter 11 or chapter 7,both are under the Bankruptcy,are in the " liquidation " process. Its assets to be distributed to creditors and shareholders ratably in accordance with statutory priorities.
The different is:
Chapter 7 is in the liquidation to terminate its business. Therefor,the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors and shareholders with statutory priorities.
Chapter 11 is in the "liquidation" to refresh and continue its business, most of its assets will not be sold for cash. Therefor,the debtor revaluates its assets, distributes the value of assets to creditors and shareholders,instead of cash by the liquidtion preference.(Chapter 11 follows the same priority scheme as other bankruptcy chapters).
In chapter 11, Ownership of the debtor will be reallocated by the liquidation preference, the creditors becomes the owner of the newly reorganized company, Sometimes, if the business's debts exceed its assets,the B.K company's owners all end up without anything; all their rights and interests are ended. if assets exceed debts, Shareholders ownership will be reallocated by the liquidation preference. Holders of common stock don't receive corporate assets unless all preferred stockholders have been compensated (bond investors take priority over both common and preferred stockholders).
The debtor's assets are to be allocated by distributing shares of new stock of reorganized company at the completion of bankruptcy.
http://www.allbusiness.com/business-planning/business-structures-corporations-stock/3779142-1.html
Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time. After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be "confirmed" by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a liquidation under Chapter 7 or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to nonbankruptcy law in order to satisfy their claims.
Equity Committees Protect Shareholders in Chapter 11 Reorganizations of Publicly-Held Companies. Next step ,We need to form a strong shareholders committees. All shareholders shall go to www.wamurape.org to discuss how to form a committees.
http://ceb.com/newsletterv3/business_law2.htm
The Goals of the Equity Committee
The Equity Committee should evaluate courses of action in the case in light of two fundamental goals. The first of these goals is to maximize the consideration received by shareholders under a plan of reorganization. The consideration offered to shareholders is almost always some form of equity in the reorganized debtor which usually takes the form of common stock, but can also include more exotic forms of equity such as warrants or preferred stock. This goal really boils down to negotiating or otherwise obtaining the largest possible share of such equity for present shareholders.
The second goal is to maximize the overall value of the equity in the reorganized debtor, which in turn maximizes the value of the share of such equity received by present shareholders. This involves monitoring the case and taking action where necessary to ensure that: (a) the debtor is doing everything possible to maximize profitability; (b) the debtor is obtaining maximum value for assets (including causes of action); (c) creditor claims are being minimized; and (d) the least possible amount of assets is being allocated to satisfy creditor claims.
Strategies for Achieving these Goals
Negotiations
As previously discussed, the paramount goal of the Equity Committee should be to maximize the share of equity received by shareholders under the plan. Although a legal framework exists for determining entitlement of shareholders to a share of the reorganized debtor’s equity, determination of this share typically does not boil down to a legal battle. More often, the issue is resolved consensually through a series of negotiations. The success of the Equity Committee in these negotiations depends upon its effective utilization of “pressure points” on the debtor and creditors.
Pressure Points
These pressure points can take many forms. Some examples include:
The need for a consensual and quickly confirmed plan. The presence of an Equity Committee can be a dangerous obstacle that can lead to concessions for shareholders.
The avoidance of the cost and risk of litigating the entitlement of shareholders to receive a share of the equity.
Worries of the debtor’s directors and management about fiduciary obligations to shareholders. The Equity Committee can increase this pressure by requesting (or threatening to request) the court to compel the calling of a shareholders’ meeting for the purpose of voting on the continued service of the directors (and by implication the continued service of management). See Manville Corp. v. Equity Sec. Holders Comm. (In re Johns-Manville Corp.) (1986) 801 F2d 60 (denying motion for summary judgment in action by debtor to enjoin Equity Committee’s state court action to compel shareholders’ meeting); Official Comm. of Equity Sec. Holders of Lone Star Industries v. Lonestar Indust., Inc. (In re New York Trap Rock Corp.) 138 BR 420 (Equity Committee has standing to seek to compel debtor to hold shareholders ‘ meeting); In re First Capital Holdings Corp. (Bankr CD Cal. 1992) 146 BR 7 (authorizing Creditors’ Committee to prosecute claims on behalf of debtor against debtor’s officers and directors). The Equity Committee can also attack the management based upon past activities (e.g., an ill-advised leveraged buy-out).
The desire of creditors to avoid an investigation into and possible litigation over matters such as lender liability, improper claims trading, or other improper activities.
In high profile cases, the desire by management and major creditor groups to appear to be publicly magnanimous.
The need of the debtor’s management to enlist the support of the Equity Committee for their executive compensation, stock options, and like plans, and to avoid Equity Committee criticism of management “perks.”
The Threat to File a Competing Plan of Reorganization
If the debtor and creditors cannot be dissuaded from attempting to confirm a plan highly unfavorable to equity, the Equity Committee may have no choice but to urge shareholders to vote against it, and to object to confirmation of the plan.
The most likely target for objection is the requirement of §1129(a)(8) that each impaired class of claims or interests vote to accept the plan. If, under the plan, shareholders are not retaining their 100% ownership of the debtor, the class of shareholders is impaired. See 11 USC §1124. All that is needed for that class to fail to accept the plan is for over one-third of voting shareholders in that class to vote to reject it. See 11 USC §1126(d). This result usually can be achieved by mailing letters to all shareholders urging them to vote against the plan. Because shareholders also will receive a court-approved disclosure statement from the plan proponent, the Equity Committee probably does not need court approval to send such a letter. See Century Glove, Inc. v First Am. Bank of New York (3d Cir 1988) 860 F2d 94 . However, to avoid administrative burden and cost and for greater effectiveness, the Equity Committee may want to ask the court to require that such a letter be included in the plan and that a disclosure statement package is sent by the plan proponent.
The failure of §1129(a)(8) voting requirement does not by itself defeat plan confirmation. Section 1129(b) allows the court to “cram down” a plan otherwise meeting the requirements of §1129(a) on a dissenting class of shareholders if the plan does not discriminate and is “fair and equitable” to such class. See 11 USC §1129(b).
Reorganization Value
Where the property to be distributed to creditors is a share of the equity in the reorganized debtor, a valuation of such equity must be performed to determine if its value exceeds the allowed amounts of creditor claims. Such equity is valued according to its “reorganization value.” This is the future value of the equity once the reorganization plan has been implemented. If the reorganization value of the equity to be distributed to creditors exceeds the allowed amounts of their claims, the plan violates the prohibition on more than 100% payment and cannot be confirmed. To be confirmed, the plan must be modified to give shareholders this excess equity value. See Consolidated Rock Prods. Co. v Du Bois (1941) 312 US 510; Fortgang & Mayer, Valuation in Bankruptcy, 32 UCLA L Rev 1061, 1126-30 (1985).
Conclusion
Appointment of an Equity Committee, and its full and meaningful participation in the reorganization process, provides shareholders with at least a fighting chance to salvage their interest in a corporation. Further, allowing shareholders to be represented by an Equity Committee promotes the Chapter 11 policy in favor of consensual reorganization through negotiations among major constituencies.
Equity Committees Protect Shareholders in Chapter 11 Reorganizations of Publicly-Held Companies. Next step ,We need to form a strong shareholders committees. All shareholders shall go to www.wamurape.org to discuss how to form a committees.
http://ceb.com/newsletterv3/business_law2.htm
The Goals of the Equity Committee
The Equity Committee should evaluate courses of action in the case in light of two fundamental goals. The first of these goals is to maximize the consideration received by shareholders under a plan of reorganization. The consideration offered to shareholders is almost always some form of equity in the reorganized debtor which usually takes the form of common stock, but can also include more exotic forms of equity such as warrants or preferred stock. This goal really boils down to negotiating or otherwise obtaining the largest possible share of such equity for present shareholders.
The second goal is to maximize the overall value of the equity in the reorganized debtor, which in turn maximizes the value of the share of such equity received by present shareholders. This involves monitoring the case and taking action where necessary to ensure that: (a) the debtor is doing everything possible to maximize profitability; (b) the debtor is obtaining maximum value for assets (including causes of action); (c) creditor claims are being minimized; and (d) the least possible amount of assets is being allocated to satisfy creditor claims.
Strategies for Achieving these Goals
Negotiations
As previously discussed, the paramount goal of the Equity Committee should be to maximize the share of equity received by shareholders under the plan. Although a legal framework exists for determining entitlement of shareholders to a share of the reorganized debtor’s equity, determination of this share typically does not boil down to a legal battle. More often, the issue is resolved consensually through a series of negotiations. The success of the Equity Committee in these negotiations depends upon its effective utilization of “pressure points” on the debtor and creditors.
Pressure Points
These pressure points can take many forms. Some examples include:
The need for a consensual and quickly confirmed plan. The presence of an Equity Committee can be a dangerous obstacle that can lead to concessions for shareholders.
The avoidance of the cost and risk of litigating the entitlement of shareholders to receive a share of the equity.
Worries of the debtor’s directors and management about fiduciary obligations to shareholders. The Equity Committee can increase this pressure by requesting (or threatening to request) the court to compel the calling of a shareholders’ meeting for the purpose of voting on the continued service of the directors (and by implication the continued service of management). See Manville Corp. v. Equity Sec. Holders Comm. (In re Johns-Manville Corp.) (1986) 801 F2d 60 (denying motion for summary judgment in action by debtor to enjoin Equity Committee’s state court action to compel shareholders’ meeting); Official Comm. of Equity Sec. Holders of Lone Star Industries v. Lonestar Indust., Inc. (In re New York Trap Rock Corp.) 138 BR 420 (Equity Committee has standing to seek to compel debtor to hold shareholders ‘ meeting); In re First Capital Holdings Corp. (Bankr CD Cal. 1992) 146 BR 7 (authorizing Creditors’ Committee to prosecute claims on behalf of debtor against debtor’s officers and directors). The Equity Committee can also attack the management based upon past activities (e.g., an ill-advised leveraged buy-out).
The desire of creditors to avoid an investigation into and possible litigation over matters such as lender liability, improper claims trading, or other improper activities.
In high profile cases, the desire by management and major creditor groups to appear to be publicly magnanimous.
The need of the debtor’s management to enlist the support of the Equity Committee for their executive compensation, stock options, and like plans, and to avoid Equity Committee criticism of management “perks.”
The Threat to File a Competing Plan of Reorganization
If the debtor and creditors cannot be dissuaded from attempting to confirm a plan highly unfavorable to equity, the Equity Committee may have no choice but to urge shareholders to vote against it, and to object to confirmation of the plan.
The most likely target for objection is the requirement of §1129(a)(8) that each impaired class of claims or interests vote to accept the plan. If, under the plan, shareholders are not retaining their 100% ownership of the debtor, the class of shareholders is impaired. See 11 USC §1124. All that is needed for that class to fail to accept the plan is for over one-third of voting shareholders in that class to vote to reject it. See 11 USC §1126(d). This result usually can be achieved by mailing letters to all shareholders urging them to vote against the plan. Because shareholders also will receive a court-approved disclosure statement from the plan proponent, the Equity Committee probably does not need court approval to send such a letter. See Century Glove, Inc. v First Am. Bank of New York (3d Cir 1988) 860 F2d 94 . However, to avoid administrative burden and cost and for greater effectiveness, the Equity Committee may want to ask the court to require that such a letter be included in the plan and that a disclosure statement package is sent by the plan proponent.
The failure of §1129(a)(8) voting requirement does not by itself defeat plan confirmation. Section 1129(b) allows the court to “cram down” a plan otherwise meeting the requirements of §1129(a) on a dissenting class of shareholders if the plan does not discriminate and is “fair and equitable” to such class. See 11 USC §1129(b).
Reorganization Value
Where the property to be distributed to creditors is a share of the equity in the reorganized debtor, a valuation of such equity must be performed to determine if its value exceeds the allowed amounts of creditor claims. Such equity is valued according to its “reorganization value.” This is the future value of the equity once the reorganization plan has been implemented. If the reorganization value of the equity to be distributed to creditors exceeds the allowed amounts of their claims, the plan violates the prohibition on more than 100% payment and cannot be confirmed. To be confirmed, the plan must be modified to give shareholders this excess equity value. See Consolidated Rock Prods. Co. v Du Bois (1941) 312 US 510; Fortgang & Mayer, Valuation in Bankruptcy, 32 UCLA L Rev 1061, 1126-30 (1985).
Conclusion
Appointment of an Equity Committee, and its full and meaningful participation in the reorganization process, provides shareholders with at least a fighting chance to salvage their interest in a corporation. Further, allowing shareholders to be represented by an Equity Committee promotes the Chapter 11 policy in favor of consensual reorganization through negotiations among major constituencies.
Could be, but not good to hold to the end,especially,$3-8B preferred stock in front of it need to be settled first.
This kind of class-action is only benefits the lawyers.
What make you think WamuQ as common stock could be recovered more before WamPQ could be able get full value recovered?
http://www.fool.com/investing/general/2003/11/12/investing-in-preferred-stocks.aspx
If you calculation were right, There was $4.6B left after debts, but don't forget there are around $3-6B preferred stocks in front of common stock to be allocated for such assets left.
I can not imagin you could able to daytrade without a margin account. in cash account, if you sold a stock, you have to wait 3 settelement days to have those cash to be available to buy the stock back again, unless you have enough money left in your account to purchase.
Companies in Chapter 11 do not have to sale assets to payoff. Most companies entered into Chapter 11 were struggling to pay interest of debts, filed chapter 11 to relief such burdens, In Wamu case, Wamu has no burdens on its long term debts. It entered into B.k was purely due to the seizure of WMBs. all holding companies have to file B.K when its banks seized to prevent further loss ,protect its assets and claim its necessary rights,and of course revaluate its assets and the equity of stock,set up its new business plans,then come out again as a refreshed new busines. WamU has been raped and in sickness, it is in hospital to be cured now. WaMu is not dead !It will come out strong again.
http://www.investopedia.com/ask/answers/190.asp
Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.
If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.
Companies in Chapter 11 do not have to sale assets to payoff. Most companies entered into Chapter 11 were struggling to pay interest of debts, filed chapter 11 to relief such burdens, In Wamu case, Wamu has no burdens on its long term debts. It entered into B.k was purely due to the seizure of WMBs. all holding companies have to file B.K when its banks seized to prevent further loss ,protect its assets and claim its necessary rights,and of course revaluate its assets and the equity of stock,set up its new business plans,then come out again as a refreshed new busines. WamU has been raped and in sickness, it is in hospital to be cured now. WaMu is not dead !It will come out strong again.
http://www.investopedia.com/ask/answers/190.asp
Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.
If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.
Listen and Watch story of Robbed and Raped of Washington Mutual.
Listen and Watch story of Robbed and Raped of Washington Mutual.
Wanna easily become a millionaire? 1000 shares of" WamPQ" will most likely get you there. First take a look at the chart below to impress you while market is in deep down trend.
Wampq is a convertable preferred stock issued by Washington Mutual,inc.
It has liquidation value:$1000/share, 3 million shares only.
Wahington Mutual filed B.K on sept 25,2008. due to FDIC seizure of its banking units. it filed assets $32B, liabilities only $8B. a few days later, it claim that company has $4.4B cash in its banks that JPM bought. It is now waitting court to be approved. and also company had court approved $20B NOL tax benifit of around $7B. more and more assets added it up will be over 5 times more than its debts. for more info visit:
http://www.wamu-shareholders-resources.com/
http://www.squidoo.com/wamuq
http://www.wamurape.org/
In the event of B.K, the company has obligation to pay its preferred stock up to its liquidation value of $1000/share before common stock get anything. Most likely the company has enough asset to distribute full value to WamPQ. That's why if you bough 1000 shares of WampQ, you will be getting $1M when Company emerge from B.K.
It is SEC filing info of WamPQ:
http://www.secinfo.com/dr643.uCc.htm
Do you own DD,and thank me later. I have been in stock market for more than 15 yrs, This stock is my best found ever in my life.
My guess tomorrow trading price could be around at $8-$10.
Hey, don't be scare by its high price per share. What if
what if company made a 1000: 1 split on WamPQ. WamPQ is trading at $7 now. after split, it become $0.007 per share with 3m x 1000= 3B share outstanding.
when WampQ go up 100 times from now , its price just only $0.7. is this Price still scare you ? How many people not and afraid of chasing its $0.7 price? well this $0.7 price is equal to $700 before split.
Can you understand now?
Well, I have to ask you:
how many preferred stocks have you seen trading in Pinksheet? even not many in nasdaq and nyse.
how many pink sheets stocks was traded at high of $1000 with liquidation value.
how many B.K stocks in pinksheet filed assets 4 times more than its liabilities?
How many stocks in pinksheet just only 3M share outstanding? you knows most pinksheets stock has billions of billions outstanding shares.
Is that enough to tell you this preferred stock is different and need to be treated different? These question are my answer to you.
anyway, if everyone was easily to understand this and realized this, We wouldn't be able to get in cheap at this price. LOL.
Hey, in fact, if WamuQ as common stock worth $2, then WamPQ as preferred stock ought to be worth at its full face value of $1000 already. Right? LOL.
you did read this message of mine:
I've known that the preferred stock of WaMPQ was mostly originally sold to and held by institutions. When Wamu banks seized and filed B.K, they dumped them, regardless of how much it will loss and what it was real value remained. You knows, when company said dump, then brokers dumped them for whatever price. That is why WampQ dropped from several hundreds to just a few pennies in just a few days. They don't care. then these institution later will claim for tax benifit for capital loss next year, same to WamU's NOL.
" we gain on their loss".
You are the smart one, WahuQ doesn't cost you too much to get a safety belt, does it? Once you have safety belt on ,you will feel more comfortable seating and relax watching other preferred stocks rising up and down. and, yet,eventually, WahuQ itself will rise while you watching others.
Anyway, all three stocks Wahuq wampQ,wamkQ are very good and scarce stocks you can find in the market.
Let's Hope it could take you all the way to the rich world.
Their desperate dumping reaction is actually a contribution to us. to the one who can see thru the real value from its covered dirt surface.
I've known that the preferred stock of WaMPQ was mostly originally sold to and held by institutions. When Wamu banks seized and filed B.K, they dumped them, regardless of how much it will loss and what it was real value remained. You knows, when company said dump, then brokers dumped them for whatever price. That is why WampQ dropped from several hundreds to just a few pennies in just a few days. They don't care. then these institution later will claim for tax benifit for capital loss next year, same to WamU's NOL.
" we gain on their loss".
B.k stock has nothing to do with the market. It is purely based on its assets availabilities. therefor, Market reactions will not affect us.
I wonder who is out there buying the common shares? institutions?