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Thanks for sharing Bjdev89 - good opinion.
I am a lurker on this board. ECIG is a bargain and the real deal and IMO a definite acquisition target. I could see an immediate RS after positive earnings, followed by a buyout from a Big Tobacco player.
What a ride and so little fanfare... here's to WMIH
We're praying for you, luv - always, A. eom
This is the response today from E*Trade:
Outstanding read, Catz. Thank you - it's amazing how this case has intertwined so many peoples' lives.
I like this quote from Mike Willingham (p. 38):
CONFIRMED - 1240 Days in BK! eom
islandcat - still got those Us for a squeeze play? 38 million short, six days to cover.. E*Trade's deadline to fax elections is next Friday the 24th. Do you think there will be a run?
My friend, having her own room certainly helps! Hope yours are well - man, I was really cheering for the Ravens last season. Last game was heartbreaking.
If you ever visit Florida, we'd be happy to have to you, brother.
Andy
Me too! Sheehat, what a ride.. eom
Class 19 Votes & Releases Comparison Chart:
It was really tiresome scrolling between votes and elections on the PDF, so I placed them side by side. Any typos and rounding errors are my own. Acceptance for Ps and Ks were based on their liquidation preferences ($1,000 and $25, respectively). All other ratios were based on Accept + Reject = 100 because I didn't know the value of the CUSIPs ending in VAA5 and TAA8.
I just wanted to provide an illustration of the votes and releases.
Chart from page 291 of the Voting Results pdf [1]
1. http://www.kccllc.net/documents/0812229/0812229120213000000000026.pdf
WTH - will $30 worth in NewCo common suffice? eom
Catz - great work; thank you! eom
Dude.. that's why we all bought Ps & Us. I get it.
Agree - we are fighting over pennies. Pathetic! eom
From Yanik's extracted quote (Thanks Y):
That's the thing - I don't see DIMEQ getting any share of NewCo at this point. Their distribution of reorganized commons is still subject to a final order that LTWs actually have equity interest (or Allowed Claim subordinated under Section 510(b) [damages arising from the purchase or sale of a security]).
The Opinion stated that WMI is not responsible for ensuring LTW Holders receive benefit from the Anchor Litigation that would have otherwise converted DIMEQ to WMI common stock (and by extension, have pari passu interest with WAMUQ in Reorganized WMI).
Further, it was ruled that WMI was within its right to settle the dispute over ownership of the Anchor Litigation with JPMC in the Global Settlement. The actual receipt of the litigation proceeds and authorized issuance of stock is what gave LTWs their value. WMI and Reorganized WMI will not be receiving those proceeds.
Most of all, The Court found that DIMEQ is equity but did not find they have an equity interest in WMI.
Just read the Opinion a second time. Here is my summary, with page citations to the relevant areas:
The notion of potential dilution of WAMUQ with the Dime Warrants (LTWs) sharing a 30% distribution of NewCo common stock are conditioned upon LTWs being determined to have "allowed equity interest" in WMI. The Seventh DS repeatedly qualifies LTWs' distribution of NewCo as contingent upon "Dime Warrant holders [be] determined, pursuant to a Final Order or a compromise and settlement, to hold Equity Interests or Allowed Claims subordinated to the level of Common Equity Interests" (Discl. Stmt., 11; 114).
The dilution scenarios use $337 million (the reserve amount for potential Dime Warrant claims)(DS 121), but only "until such Claims are allowed or disallowed by Final Order of the Bankruptcy Court. As stated, the Liquidating Trustee ... will also reserve Reorganized Common Stock, ... to distribute to holders of Dime Warrants, if such holders are determined, pursuant to a Final Order, to hold (i) Equity Interests or (ii) Allowed Claims subordinated to the level of Common Equity Interests pursuant to section 510(b) of the Bankruptcy Code or otherwise" (DS 121).
The LTW Holders had no intention to threaten WAMUQ's share of NewCo. Precisely, the goal was to swim upstream the waterfall as a creditor concern and exercise rights they claimed were activated due to the merger of WMI and Dime (Op. 7/8). The LTWs' were distributed as a tax-free dividend for the right to purchase a variable number of shares (and only shares) of the entity that received compensation from the Anchor litigation:
Interesting - could JPMC be compelled in another court to amend the Warrant Agreement (WA) because it is the successor to the Anchor recovery:
The Opinion cites that the WA was amended in 2002/3 to issue WMI stock after the merger with Dime, because WMI became then successor to the Anchor Savings litigation. The Court only found that the GSA states JPMC is the new beneficiary and that there was no trigger event & WMI did not breach the WA *** The Court did not rule that JPMC should amend the WA because they were not a party in this action ***
Unless the EC clarifies any special consideration for the LTWs re. NewCo in their FAQ to be filed. The Court said there was no breach in the Warrant Agreement to entitle LTW holders to commons and that the GSA specifies that JPMC owns the very thing the tracking warrants were tracking: the Anchor Litigation recovery.
LTWs are in a bad place -
From the Opinion, The Court finds that:
1. The GSA settles that JPMC acquired the Anchor Litigation (AL) by acquiring WMB;
2. The LTWs, by all evidence, were equity and not debt, so there was no creditor claim to the AL recovery, only a right to purchase WMI common;
3. The LTW claims are subordinated to that of common stock; and
4. that WMI did not breach the LTW Agreement that would entitle Holders to receive WMI common stock.
Source:
http://wmish.com/docs/dime/dime_ruling.pdf
JHD... True that sir. eom
Cheers claw eom
Nice!! Thanks Steel. And props for going thru the proper channels (tho SG has always been VERY GOOD about responding to shareholder emails).
GLTA
E*TRADE: .111 (+49.315%) eom
Still here to claim my bone lol eom
I know - I do like seeing a face with the name. And the reviews, though embittered, sometimes possess grains of clues into the judge's demeanor. Whoever becomes the mediator I hope can facilitate a deal from this quagmire that ultimately gives the EC at least NewCo with NOLs - after the new year.
Raymond Lyons profile on RobeProbe:
Continuity: someone needs to write one! But we still need to wait for the final chapter... "Shareholders' Revenge"
Oh yeah! Nice post, friend :) eom
AP Update: Del.Judge rejects reorg, cites IT claims
Washington Post picked up AP article, added IT to headline: "Delaware judge rejects Washington Mutual reorganization plan, cites claims of insider trading"
GREAT NEWS! THIS IS FOR YOU, WAMU LONGS!!!
Good call. In honor of WaMu - the Court issues a decision Thursday, September 1, around 4pm.
Long way *toward* making a decision eom
Uz - my feeling for today:
Most of the substance of today's oral arguments have been presented and digested by Judge Walrath. She must know by now how she will rule re. confirmation. Her body language and attitude with the players today should be clues.
The easiest path to deny confirmation is the valuation of and strategy to reorganize WMMRC as a runoff. Maxwell's testimony and conservative calculations using WMI's significant tax attributes maximizes the entity's value and is what Ch. 11 is all about. It is insulting to the system to use reorg as a ruse for liquidation. Even if she does not want to address bad faith or IT, this should be enough to deny the POR in its mangled form.
Applying the federal judgment rate for postpetition interest is another key concept - I would expect the EC to win this argument.
I am looking for her reaction to the SNHs - specifically regarding bad faith. Could this be the case where the Third Circuit takes the hedge funds' candy away? I'd jump for joy. Sure, the Judge has disappointed me in the past, but she has also ruled brilliantly when times seemed the darkest for common shareholders.
Should be an interesting day, but we have already seen the players' scripts. So, our fortunes rest in the details and tension in the room, and not just the words by the actors.
Best of luck everyone!
OHH YEAH - whatever happens, to the end! eom
My gut says BR is trying to F Dime with us. Recall the motion to appoint an official Dime LTW committee. By phrasing 24.3 that any excess of the Litigation Trust to the Preferreds will be distributed pari passu with commons, WMI is feigning fairness. But the LT don't give us *shiat*, as Voodoo would say.
So Dime is put in a worse position with this amendment, and commons/prefs are in the same scenario as every other POS POR. UNLESS SOME REVELATION befalls us and the EC !!SUPPORTS!! this development, this is just another trick.
**UPDATE: Just saw Debtors' objection to EC pursuing claims against Estate. Confirmation that BR is a CSMF.
FUBR
You're probably right. <sigh> waiting for EC's...eom
Trying to parse this: