Linda is biotch...! LOLz JayKay
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FDIC Declines Extension of Timeframe for $7B WaMu Bankruptcy
NOV 7, 2011 1:31pm ET
WILMINGTON, Del. — The Federal Deposit Insurance Corp. has balked at extending the termination date for a three-way deal at the heart of Washington Mutual Inc.'s Chapter 11 plan, company attorney Brian Rosen said Monday.
The settlement has not been terminated and won't terminate automatically. However, the refusal of the FDIC to consent to an extension means the $7 billion agreement could be terminated at any time by any party, said Rosen, who's with Weil Gotshal & Manges.
The announcement came at a hearing in the U.S. Bankruptcy Court in Wilmington, Del., where Judge Raymond Lyons, a New Jersey bankruptcy judge, was scheduled to report on progress in a mediation over disputes that have held Washington Mutual in bankruptcy. Lyons has asked for two additional weeks to make his report.The matters under mediation don't directly involve the settlement, and there are no signs Washington Mutual or JPMorgan Chase & Co., the other two parties to the Chapter 11 plan settlement, are inclined to pull out of the deal.
A spokesman for the FDIC could not immediately be reached for comment Monday on whether the agency intends to continue abiding by the settlement.
Washington Mutual and JPMorgan Chase agreed to the extension, Rosen said. They are the old and new owners, respectively, of Washington Mutual Bank, or WaMu, a thrift that was seized by regulators in September 2008 due to concerns it was a hazard to the shaky U.S. financial system.
Washington Mutual, JPMorgan Chase and the FDIC agreed to settle disputes over what went wrong at WaMu, dividing up billions in cash and other assets. The pact formed the core of Washington Mutual's Chapter 11 plan.
The settlement has survived attack from shareholders twice, but Washington Mutual's Chapter 11 plan was rejected twice due to unrelated defects.
Washington Mutual's continued stay in bankruptcy is upsetting creditors, said David Stratton, attorney for the official committee of unsecured creditors.
Stratton, who's with Pepper Hamilton LLP, cited the $30 million monthly cash burn, which is eating away at the recovery for the lowest-ranking creditors in the three-year-old case.
The case delay is more costly to some creditors than to others, as most of the cash burn is in the form of interest that is adding up on senior debt.
Clawman, if there was some sort of agreemenet worked out in mediation that coverd this litigation, the Judge would never render her decision just like she never rendered her decision on the infamous "four billion" as it was tied up in the Global Settlement, thus no ruling, YET!
If anyone is interested in knowing if the $ 337 M in reserve is in addition to the $ 7.399 in Net Proceeds you can phone and ask the Indenture Trustee - Mr Curchack - at the following number -
212 - 407 - 4861
I concur 100%:
For Christ's sake, Binda1! See, it's things like this that drive some people on this board nuts: . . .
The rumor/theory was that TPG was short WMI and covered their short position when they had their preferreds converted to commons.
They never never wanted to be part of the EC. Conflict of interest.
TPG/Bonderman are not equity's friend.
imo
Well, imo, the shares of the reorganized debtor is pretty much a given.
I would probably use the old settlement as a template for today's settlement (assuming there is one of course).
Being millionaires was almost guaranteed after the 5 year carry backs kicked in, however, the split was not in WMI's favor. Some of us may still be millionaires even with 20% face. =)
The question becomes: What is the split amongst the various parties re: the reorganized debtor?
We are likely to have interest in a liquidation trust and possibly a litigation trust.
imo
We can only speculate. imo/eom
Are you serious?
I cannot tell if you are joking...
EDIT: Ok, you are being sarcastic. Hard to tell on the net.
Whom ever wrote that article is an absolute dipsh!t. eom.imo
Reasons for the firm wall:
TO discourage buying.
Entice penny flippers to sell and take profit.
Holders to sell thinking there is a big seller so holders sell and think they will be able to buy in lower.
MMs watch for bid strength, if there is light bidding, MMs take down the PPS and short the bidder and entice selling. Depending on how hard the MM try to take down the PPS, may trigger stop losses.
Some firm walls may even be real, however, yesterday, I believe there was a buyer or accum by MM.
THere are other reason, other may want to jump in.
IMO
I am not very good at explaining things, so I will have someone else jump in.
Here is my previous post:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=69154946
marayatano Member Profile marayatano
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Friday, November 18, 2011 2:49:46 PM
Re: clawmann post# 37835
Post # of 37864
What I have noticed, is when retail buys, it the PPS goes up (because of the multi MMs competing one another for price). When "big fish" buys, it goes down or the PPS gets "capped" (by 1 MM that accumulates).
That is why we see large volume and little to no price movement.
Strictly my opinion.
The 6604 after hours trade is more than likely a ticket written at the end of the day to a client (a buyer) from a B/D. The way it works is a buyer (or a seller) will give an order to a B/D for let's say 10,000 shares of PQ's at $25 or better, good for the day. The B/D will then spend the whole day accumulating shares in small blocks (because no large blocks available). So the B/D buys all day long in 200's or 300 share pieces. At the end of the day they were able to accumulate 6604. They then write one ticket on the 6604 to their buyer at $24.10. There average may of been $23.75 and they kept .35 commish.
So these shares are more than likely double counted, counted once when the B/D bought them from retail in the smaller pieces, and counted again when the B/D sold them to the buyer at $24.10.
What I have noticed, is when retail buys, it the PPS goes up (because of the multi MMs competing one another for price). When "big fish" buys, it goes down or the PPS gets "capped" (by 1 MM that accumulates).
That is why we see large volume and little to no price movement.
Strictly my opinion.
I am off to lunch... tah tah
24.00 x 24.10, it will break... right after I post this, LOL. imo/eom
Yes, I asked mod to delete because I inadvertently posted some mis-information re: senior security. eom
Never said it will trade at $999. It will trade at or near whatever the payout (cash wise) is mentioned in the POR, and depending on "who" is buying, it may trade at a slight premium, to distributable cash because of future recovery.
Obviously, no one can pin point the price they will trade at, but one can only speculate.
imo
The buck does not stop there...
Not only will preferreds get cash (assuming there is distributable cash), they will get a portion of the new company since there is not enough cash to pay the issue amount. Not only that, they will get part of the liquidation trust and litigation trust until the face value is paid off (assuming there are these trusts upon emergence).
You are missing the full picture... preferreds are now destined to become the fulrum group. This was the place the HF's were trying to be, now it will move down the waterfall to the next group...
BTW: I know sometimes my post my come out appearing like an attack, but rest assumed, it just stating the possibility. I know typing on the internet is not the same as speaking.
imo
Opps. Thanks for pointing that out. That is what I get for tying to do my work and skim through the POR. I can't multi-task. ha ha
Class Claim or Interest Status Voting Rights
A Second Lien Note Claims Impaired/Unimpaired Entitled to
Vote/Conclusively
Presumed to Accept
B Secured Tax Claims Unimpaired Conclusively Presumed
to Accept
C Other Secured Claims Unimpaired Conclusively Presumed
to Accept
D Other Priority Claims Unimpaired Conclusively Presumed
to Accept
E Convertible Notes Claims Impaired Entitled to Vote
F 9.125% Senior Note Claims Impaired Entitled to Vote
G Quarterly Interest Bond Claims Impaired Entitled to Vote
H Trade Claims Impaired Entitled to Vote
I Guaranteed Landlord Claims Impaired Entitled to Vote
J Union Claims Impaired Entitled to Vote
K General Unsecured Claims Impaired Entitled to Vote
L Intercompany Claims Impaired Deemed to Reject
M Interests in A&P Impaired Deemed to Reject
N Intercompany Interests Impaired Deemed to Reject
O Section 510(b) Claims Impaired Deemed to Reject
7. Class G — Quarterly Interest Bond Claims
a. Classification: Class G consists of all Quarterly Interest Bond Claims.
b. Treatment: Except to the extent that a holder of an Allowed Class G Claim
agrees to a less favorable treatment, in full and final satisfaction,
settlement, release, and discharge of and in exchange for each and every
Allowed Class G Claim, each holder of an Allowed Class G Claim shall
receive on the Effective Date, or as soon as practicable thereafter, Cash
equal to its Pro Rata portion of the Unsecured Creditor Cash Pool.
10-24549-rdd Doc 2868 Filed 11/14/11 Entered 11/14/11 13:22:43 Main Document
Pg 28 of 69
25
c. Voting: Class G is Impaired and holders of Allowed Class G Claims are
entitled to vote to accept or reject the Plan.
Wow, more cheapies!!! You are like an ATM machine! Are you going to add more when they go even lower??? You got a lotta lotta money!!!!
I prefer Coke...
It depends on Willingham... (because he owns only commons)
He knows if he pursues litigation, Commons are going to get Zero, nada, zip, zlich, etc. All recovery through litigation will be going to preferreds via absolute priority UNLESS he can know out he GSA.
That said, Willies only alternative is to settle this now and get a little for commons or get nothing for commons and just get compensated from being on the board/trustee or whatever after confirmation.
Willie has nothing to lose but all to gain
So the answer is yes, before end of year, but confirmation early next year.
Strictly my opinion.
Yes, plus new stock in WMI2 and interest in Liq Trust and lit trust (assuming there are theses trusts). imo/eom
This is my response:
There is an ownership restriction on WMI.
Now tell us, how can you convert the preferreds into common stock without changing the ownership restrictions set by the Court and the IRS? You can't.
How can you convert preferreds into commons without reducing NOLs of the estate? You can't.
There is no conversion clause in K, HOWEVER, because WMI filed for BK protection which caused a default event of WMI which in turn triggered the P's liquidation preference i.e. C A S H (or equivalent). Therefore P's are entitled to the face value of $1,000 per share.
Now since WMI is in BK protection, P and K are in the same class, therefore they BOTH will have the same disposition as evidence in all the PORs by the debtors and the latest PR re: settlement of May/June 2011.
You need to understand, it is not what about what the prospectus says, it is about knowing the totality of the circumstances that must included knowledge of bankruptcy, not just reading the prospectus.
Bottom line: P and K = the same class = the same disposition.
BTW: P's are far superior to K's in price/risk ratio for maximum return on your money.
Note: Swapping prefereds for new common into the reorganized debtor is a diff story.
imo
Same class = same disposition.
If P converts, so does K.
All gets treated the same.
imo
no. eom
so keeping in line with this same train of thought, consider the H's getting a haircut, as folk here like to say; and recieving the difference in common shares of the newco. this would allow p's fv and h's a settlemnt of percentage of fv and common stock in newco.... (remembering the fact that they wanted to increase common share in newco buy about 20%). It is possible h's get 20% "haircut" off fv, and recieve that 20% in new common......just a speculation
The underlying security of the hybrid H's are junior sub bonds which carry a subornation clause that they must make seniors whole.
Right now seniors are accruing contract interest while the BK estate is providing federal judgment interest. This Opinion does not make seniors whole so the difference is made up by H's recovery.
That is why everyday the H's continue to bleed lower and lower until zero. Once it hits zero, they are not gonna get any part of the reorganized debtor nor issued any other new security.
... unless... an event stops the bleeding (interest), but the make whole clause is still there...
imo
...unless you give up all your Diet Cokes...
Some sort of immediate settlement that will stop the seniors from continuing to accrue contract interest...
imo
H's are F'ed as of the Court's Opinion. More f'ed as time goes on UNLESS... imo/eom
nvm, eom
Zero chance. That is not the way BK works. imo/eom
The short answer:
All debt will recover principal and interest in the form of FJR: FACT (Court Opinion)
Subordination from junior creditors to senior creditors of deficit: FACT (Court Opinion and HUQ/junior sub bond prospectus)
The variable here is: seniors must cause an act to recover the deficit from junior. This is not a fact that they will, however, more likely than not, the seniors will pursue because it is the obligation of the senior bonds trustee to do so.
That is the reason why both seniors and juniors price adjustment by the market to reflect FJR, which is the max from Bk estate. The variable kicks in if the Trustee pursues (after effective date of BK confirmation).
This is just my opinion.
Thanks. Good day.
Are you going to add more cheapies when they go down to .08 ? Just a joke. ha ha
Do you have any thoughts on how the senior bonds droped based on the FJR news and the WAHUQ droped as well. One or the other should have dropped, not both?
You should have listened to those who posted objectively.
Don't worry, you still have a 12 pk of diet coke in the fridge.
Hey, there is still mediation, so who knows. Just throwing that out there (to make you feel better).
imo/eom
Thanks for the tip. Will look into it. As for the Lehman, I didn't realize it was there. Those are toast as far as I am concerned.
"Nonsense" - You said Commons were the least risk and DIMEQ was Not a WMI security. Let us try to be truthful and accurate please.
All anyone has to do is read your previous posts to know you are full of ****.
imo
Did the 32 page Objection contain any "Law" or "Legal Authority," or was the Objection just 32 pages of "It is not fair"?
Thanks.
I 100% concur! Thank you. eom
Now I have a question for you. Why do you come on here asking the most basic questions and then go over to the WAHUQ board and tout yourself as an expert on DIMEQ? Remember when I suggested a few days ago that you ‘Read more and post less” because you don’t have the requisite knowledge to be trying to educate others about DIMEQ? and you replied “Nonsense - I have read 57 pages (all) of the Post-Trial Memorandum and it was more than sufficiently detailed for me to render an opinion on its merits and the value of the DIMEQ stock.” I guess you need to keep reading.
It appears from the types of questions that you ask here and elsewhere that you lack even the most basic understanding of the securities you post about. My last suggestion to you is to do your own research before asking questions and then you won’t have to ask rudimentary questions. I also will suggest that you know far too little to be investing in WAHUQ or DIMEQ. That is actually a fact, not an opinion. The posters here don’t have the time to hold your hand thru every little question that may occur to you so that we can get you up to speed on what has transpired over the last 3 years. Maybe you can convince someone to keep playing your little game but until you ask the types of questions that reflect any level of sophistication you may be disappointed in the lack of responses because most folks here don’t want to encourage the underinformed to invest in things they know far too little about. If you were a long-time holder I might play along to be helpful because the bankruptcy process adds a different level to an already difficult security but you are clearly not a long term holder and are not up to speed on any facet of the WAMU case.
I hope I have given you just enough advice and spoken enough truth so that you will want to put me on ignore. Just to be clear, I don’t mind questions I just don’t like people who ask simple questions and then parade themselves around on other boards as a purported expert. Why would anyone do this?
What do you think Mediation is?
If settlement is delayed , that alone indicates of one being in progress, IMHO
Rockie, your post me: this is my current view on HUQ (pending mediation), I just didn't want to post it over "there".
Time is not in HUQ's favor.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68233229
Don't worry, you still have your diet Cokes.
imo