Linda is biotch...! LOLz JayKay
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Looks like a settlement has been agreed upon... now we need the paper version, ie details of the settlement... eom
We should just wait for the details... information from the court is too "fuzzy" as well as the WMI Press Release. eom
Agreed however, he is chairman. If I was on the EC, I would have voted him out because he is too heavy in to commons, i.e. biased.
Like I said, I do not mind sharing with common... just not "what it appears to be right now..."
We will wait for the details...
imo
Let just say that I am grateful that we are in the money, but Willingham better adhere to absolute priority. I personally do not mind a haircut for from my P to give to commons, just be fair.
Anyhow, we should all wait and see the details of the settlement to come out. It may change... it can only get better from here...
imo
Agreed... eom
All I am going to say is: P/K better have the majority interest in WMI2, if not...
then p/k better have shares in the litigation trust without any limitations or caps on recovery from litigation.
Not only that, imo, Willingham is going to get a cushy salary/commission to be on the BOD and BOT. Gee... what a coincidence... along with the current settlement... Gee I wonder if that was any sway to settle...
Anyhow, we should all wait and see the details before we all speculate more ...
I don't want to jump the gun here... I will give Willingham the benefit of the doubt here and the terms may change to get a sweeter deal as it sounded like in court...
imo
I am work... I will have to listen to the court hearing tonight. Will reply later..eom
Press Release
For Immediate Release
WASHINGTON MUTUAL, INC. ANNOUNCES SETTLEMENT
WITH SIGNIFICANT CREDITORS AND EQUITY COMMITTEE
SEATTLE, May 24, 2011 – Washington Mutual, Inc. (Pink Sheets: WAMUQ.PK) (“WMI” or the
“Company”) today announced that the Company and certain of the Company’s creditors have reached a
tentative settlement agreement with the Official Committee of Equity Security Interest Holders.
Under the terms of the tentative agreement, which remains subject to the parties executing definitive
documentation memorializing the terms thereof, the parties have agreed to the following:
?A litigation trust will be established to pursue claims and causes of action that are property of the
Debtors against certain non-released third parties. This litigation trust will be funded by the
Company with an initial $5 million cash contribution and additional contributions, under certain
circumstances, in an amount not to exceed $25 million. The previously announced liquidating
trust contemplated by the Company’s pending plan of reorganization will be entitled to receive all
proceeds realized by the litigation trust until repaid in full (other than with respect to the initial $5
million contribution); thereafter, the beneficiaries of the litigation trust will be the holders of
allowed, subordinated claims, as well as preferred and common equity holders.
?Common equity in the reorganized Debtor will be distributed to holders of allowed, subordinated
claims and the Company’s preferred and common equity holders. In addition, certain holders of
allowed claims, other than those holding allowed claims who would have previously received
common equity in the reorganized Debtor, have agreed to receive a debt instrument and a
preferred equity instrument having a combined, aggregate net present value of approximately
$160 million.
?Certain significant creditors will commit to provide a senior secured credit facility for the
reorganized Debtor in an amount not to exceed $100 million.
?Upon filing of a plan consistent with these additional terms, the Equity Committee will stay its
appeal of the Bankruptcy Court’s order, dated January 7, 2011, regarding plan confirmation.
Additionally, upon confirmation of such plan, the Equity Committee will withdraw, with
prejudice, such appeal.
WMI issued the following statement:
“WMI is pleased to have reached this tentative settlement agreement, which is an important step
toward completing the Chapter 11 process. WMI looks forward to distributing over $7 billion to
the estate’s parties-in-interest upon confirmation and approval by the Bankruptcy Court.”
If the parties are unable to reach a definitive agreement that incorporates the tentative settlement
announced today, the Debtors intend to proceed with the hearing scheduled to begin on June 29, 2011 to
seek confirmation of the plan of reorganization currently pending before the Bankruptcy Court.
Additional details regarding the settlement agreement are available at www.kccllc.net/wamu.
P and k is in the same class = same disposition. Surpised she doesn't even know that.
Imo
ASK $32.80 high of day eom
ASK $29.90 - HIGH of $32 eom
Agreed. I personally thought it would have gapped up on news, but 5% (4.xx%) ownership restriction would hinder it unless there was new fish coming in.
This leads me to believe that insiders already accumulated the max ownership... unless... the news is still be digested through their (or other company's) compliance dept of what company (HF, Mutual fund, institutional investors, etc. before a major purchase can be made).
All speculation on my part of course...
imo
ASK $25.40 eom
You bring a very valid point. You are right.
Also see this:
The outline of the deal includes $25 million for a litigation trust that would bring lawsuits to collect more money for shareholders. In return, shareholders would drop allegations that hedge funds who own $2.54 billion of WaMu’s debt used confidential information to guide their investments.
EDIT: Link posted: http://www.bloomberg.com/news/2011-05-20/wamu-said-to-settle-with-lenders-shareholders-on-post-bankruptcy-control.html
Credit: marketguru35
-------------------------------------------------------------------
Can anyone confirm this article I saw on Uq board: (No date no link etc.)
Washington Mutual Inc. (WAMUQ) and its biggest creditors agreed to settle a fight with shareholders by giving them control of the company that will emerge from bankruptcy, two people familiar with the proposal said.
The outline of the deal includes $25 million for a litigation trust that would bring lawsuits to collect more money for shareholders. In return, shareholders would drop allegations that hedge funds who own $2.54 billion of WaMu’s debt used confidential information to guide their investments.
Shareholders are among the last opponents to WaMu’s reorganization plan, which would pay more than $7 billion to creditors, who are mostly unsecured note holders.
Details of the proposed settlement have not yet been decided and the deal could still fall through, one of the people said.
WaMu, based in Seattle, filed for bankruptcy on Sept. 26, 2008, the day after its banking unit was taken over by regulators and sold to JPMorgan Chase & Co. (JPM) for $1.9 billion. Washington Mutual Bank was the biggest bank to fail in U.S. history, with more than 2,200 branches and $188 billion in deposits.
The case is In re Washington Mutual Inc., 08-12229, U.S. Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net Linda Sandler in New York at lsandler@bloomberg.net.
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.
I see what you are saying...
If you "search" my post history on the P board, there was a pleading/filing I posted where one of the HF (or entity) accumulated WMI securities from a certain date to another date.
If you compared it with the chart on those dates, you will notice that while the entity accumulated, the PPS traded in a channel or hardly moved.
Once all the sellers dried up, the accumulator has to raise its BID for the security. Same goes for the Ps. Sellers are drying up.
Flippers keep the Ps liquid.
Good night, it is bed time for me.
IMO
The A/D on the chart says it all. Goes way up while pps remains more or less at the same level. I cleared some more funds.
Here is one scenario why no one filed an objection other than TPS:
Commons have a $7.5 billion (plus deficit in the HUQ) hurtle be be .01 in the money.
There could be a revised GSA w/ a revision to the POR (the NEW settlement talks behind the scenes), in that TPS (hence their objection only being filed) was cut out of recovery except for the 50 million distribution to them as consideration for releases. It is a forced release in the POR.
You essentially lop off $4 billion going to TPS and redirect the waterfall to commons. Therefore, commons only face a $3.5 billion hurtle (plus HUQ deficit). This achieves releases from all parties, preferreds, commons and TPS by way of force, ie, $50 million distribution.
TPS is essentially going to be back stabbed by EC. TPS filing objection is a CYA filing.
HF have no choice but to agree and start to accumulate non-restricted ownership securities to make the best of obtaining shares of the reorganized WMI2.
Strictly my speculation.
You shouldn't have granted releases... Voting or selling, I don't care about, it is just the releases...
You had one year to grant releases...
In order for your release to be valid, you have to receive consideration in the form of some sort of compensation. It could be .01 or it could be "fill in the blank". If it is .01, your are bound by the release with no recourse (however, I do even think we have the capacity for recourse if this whole things goes south).
It is like a girl "giving you all the goods" up front... and you did not even have to take her out to wine and dine her first...
At any rate, I still think preferreds are in the money, after a portion of NOLs and re-valuation of WMI2.
But, I do agree with you about Rosen.
imo
I voted no and granted the realeses, so it was a surprise that my shares were not locked. Any one else able to sell shares after granting the realeses ?
Here is one scenario why no one filed an objection other than TPS:
Commons have a $7.5 billion (plus deficit in the HUQ) hurtle be be .01 in the money.
There could be a revised GSA w/ a revision to the POR (the NEW settlement talks behind the scenes), in that TPS (hence their objection only being filed) was cut out of recovery except for the 50 million distribution to them as consideration for releases. It is a forced release in the POR.
You essentially lop off $4 billion going to TPS and redirect the waterfall to commons. Therefore, commons only face a $3.5 billion hurtle (plus HUQ deficit). This achieves releases from all parties, preferreds, commons and TPS by way of force, ie, $50 million distribution.
TPS is essentially going to be back stabbed by EC. TPS filing objection is a CYA filing.
HF have no choice but to agree and start to accumulate non-restricted ownership securities to make the best of obtaining shares of the reorganized WMI2.
Strictly my speculation.
It is dependent on different factors or combination, but I believe preffereds to be in the money.
FJR (includes consideration for releases from prefereds very good possibility due to creditors w/ BILLION $ claims exchanging for MILLION stake in WMI2 = inside information on creditors end) Judge Walrath knows this and has probably already made a determination of FJR based on creditors wanting WMI2 already... however, that is my speculation...
Dis allowance (Partial/full) <---- questionable???
Valuation of WMI2 as an operating entity as opposed to a run off entity (this is where I feel is strong and will get preferreds a % of WMI2 and not liquidation trust). This is where PJ&S and SG will shine in our favor.
NOLs (useable - strong enough to get a % of WMI2 and not liquidation trust) This is a given, but it is to what extent and partially based on valuation of WMI2 as an operating entity, not run off.
Insider Trading (we all believe there was some, it is just a question of "PROOF".)
Based on the above combination, that will give you your % of WMI2.
THIS IS ASSUMING GSA stays intact, preffereds have an extremely good chance even with the GSA intact.
IMO
Now lets say you've been holding shares LT, and your tax rate is 15%. Why wouldn't you just sell them on the news? If by some miracle the hedgies said we're giving up xx amount to make preferreds worth 50% of FV... they would run to close to that level. Sell and be done with it and pay 15%
LMAO. ha ha eom
Brief Observation: What I noticed is the Bid size has been consistently at 400 while Ask size has been 2,700. Even though trades have been going through at the Bid and Ask, the sizes on each side does not change.
Since we are so close to confirmation hearings, could it be possible, that someone from the P's accumulated more than the ownership restriction about of 4.xx/5% to purposely drive the Ps down to increase the spread between the P and K???
While we know the Ks have no ownership restriction, an entity/individual may exceed the 5% threshold, unlike Ps.
What does this equate to? Artificially Depress Ps (increase spread) to entice Ks to sell to an awaiting buyer (no ownership restriction) and move into Ps?
Make sense?
Or it could just be someone want to put a vote in "for the POR" and then sell...
I don't know and can only speculate.
EDIT: Ask size finally changed to 1,100 and yes, I know, these are the Pinks, so really no regulation...
imo
No new thoughts, however, I believe if PJ&S can provide a valuation as WMI-2 as being an active and running operating entity, rather than a run off entity as propose by WMI, I believe, we will be part of WMI-2 (shared with HUQ), rather than part of a liquidation trust. The addition of NOLs is also a good for preferreds.
A revaluation of WMI-2 as an active and running operating entity would/should be huge because I assume they were originally re insuring Wamu (and other) loans. This is my understanding, someone correct me if I am wrong about this.
There is also the FJR issue. If that comes into play, then equity control WMI-2.
This is based on if GSA is upheld.
Preferreds have a good chance and are the closest to being officially "in the money".
This is strictly my opinion.
From the top of my head:
The filing of BK was the trigger for the liquidation preference in WAMPQ. Therefore, P is entitled to CASH and yes, conversion was BEFORE the default event triggered in the Ps.
The people who tell you that K get paid cash and P get converted do NOT know jack.
Conversion of P would constitute a change on ownership which will invalidate (or partially invalidate) the NOLs of the estate.
All you need to know is K and P will have the same disposition upon emergence because they are a member of the SAME CLASS. People still do not get that.
Possible Disposition of both P and K: Continue to float and pay divy, conversion to WMI-2, partial payment, full payment, a combination thereof, etc.
imo
D. Bonderman = Foe. eom imo
Well, I had already sold my notes, but here is some info:
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date.
Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities. Both are discretionary and have expiration dates. The word warrant simply means to "endow with the right", which is only slightly different to the meaning of an option.
Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be used to enhance the yield of the bond, and make them more attractive to potential buyers. Warrants can also be used in private equity deals. Frequently, these warrants are detachable, and can be sold independently of the bond or stock.
In the case of warrants issued with preferred stocks, stockholders may need to detach and sell the warrant before they can receive dividend payments. Thus, it is sometimes beneficial to detach and sell a warrant as soon as possible so the investor can earn dividends.
Warrants are actively traded in some financial markets such as Deutsche Börse and Hong Kong.[1] In Hong Kong Stock Exchange, warrants accounted for 11.7% of the turnover in the first quarter of 2009, just second to the callable bull/bear contract.[2]
Meaning of itchy right hand or left hand?
this is based on a superstition
this is answer is taken from another answer site
The superstition is as follows: "If the palm of your right hand is itchy, then it fortells that money is coming to you, but don't scratch it as that stops the money from coming! If it's your left palm that is itchy, then scratch away, as that means that you'll soon be paying money."
My Right Palm is Itching... eom
It could be a combination of bid sitters buying, or it could be a "larger" buyer snapping up from a couple of little retailers who like flip at every opportunity.
Above average volume yesterday.
imo
Hmm... We can't blame CiCi for this one this time. Who can we blame? LOL
LOL! Absolutely true! eom
this is like your longest hold I've see you do....
you would make Warren Buffet proud..... lol
706 filing ? eom
Thanks for posting the info. I have Eturd and have yet to receive anything.
Thanks again.
I know what you mean. Hindsight is always 20/20, but I think we will be "ok".
Thanks for the kind words!
rosen in court stated: you have a 1 year option to opt in or out for releases.
As far as voting, I have not comment. We should wait for the official written communication from Susman.
Thanks.
imo
Thanks for the info.
It will only take me 1 day to set up the trust and either the same day or the following day, I can obtain a tax id #.
The only thing out of my control is how long it would take to set a brokerage trust account as the trustee.
Thanks for info on the 35% rate. I didnt know that.
I am just debating if it is worth going through all that trouble.
My main reason was not he flipping, but I think rosen & Co. watches these boards and came up with this W9 request for tax payer identification number.
when the board was discussing different strategies as to vote down the POR by opening up separate brokerages (but we would still have the same SS number regardless).
I think rosen is trying to tie us down on releases based on our SS numbers. If you didnt give a release, then no distribution. Hence the SS# vs. trust Tax Id.
If you did give a release, then distribution, but how much or what? If he screws us, and you gave the release (and got some sort of "distribution", you are barred from being any future action (however, I do think I would be entitled to any sort of damages).
The main thing is rosen bounding us by our SS #'s. There is more to it, but I cant get into it.
Again, I have not seen the paperwork because my broker has not sent my any info. I am only going by people on the board re: W9 form.
Once again, thanks for the info.
imo
Yes, i remember he said that to a shareholder, however, one person's perception (and interpretation) varies from one person to another.
Susman had an official recommendation in writing.
imo