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He was the General Counsel of WMI all through the BK. He is now General Counsel of the new company. Prior to filing BK, he was an in house lawyer at WMB and for a very short period after the seizure he worked for Chase.
The Wamu Tower never was Washington Mutual's or JPM's. They did not own it, only leased it as their headquarters prior to 2006 when they moved to the Wamu Center. The center was owed by Washington Mutual Bank and was therefore part of the FDIC sale to Chase. Chase then sold it to Northwestern Mutual who now has it for sale again. End of real estate lesson.
Possibly never.
There can't be any stock options or bonus promised if it wasn't disclosed. That is the extent of their comp. The rates of salary seem reasonable to me considering it is a dinky company.
Question to BK experts out there. Will there be filings by the liquidating trustee detailing the distributions to creditors? In other words will we know when funds are dispersed, how much and to which classes?
Don't expect any first quarter filings. Newco will not be subject to reporting requirements until they decide to list on an exchange.
The settlement did not accomplish much for common holders. If you expected more and took the risk, then you have to live with the outcome. It was a long shot to begin with. In some respects it is amazing that this stock was not canceled 2 years ago. This is the way BK works. Those at the back of the line get little or nothing.
What assets? The judge has settled all assets available to WMI by approving the GSA. This is all there is. If it is worth 2 cents in the market's eyes, then that is the bottom line
I think that one is for snail mail and the other is for overnight.
$400 dollars of recovery down the drain. These lawyers are amazing. Pigs at the trough.
This from Fidelity just now.
Hi XXXXXX. I do have some additional information on the mailing. It took place over several days, starting last Thursday and ending this past Monday. The mailing does not include the return address for the ballot, so I am including that address here to provide to your client. Please let me know of any other questions that may come up.
Thanks,
Jessica
NATIONAL FINANCIAL SERVICES
100 CROSBY PARKWAY
COVINGTON KY 41015
ATTN: MAIL ZONE KC1I
Deadline for voting/receiving distribution:
NFS VOTING AND ELECTION REPLY BY DATE:
IN ORDER FOR YOUR VOTE TO BE COUNTED AND ELECTIONS PROCESSED, HOLDERS MUST
COMPLETE AND RETURN THE BALLOT TO THE BELOW ADDRESS BY FEBRUARY 3, 2012
("NFS VOTING REPLY BY DATE").
NFS ELECTION "ONLY" REPLY BY DATE:
IN ORDER TO BE ELIGIBLE TO RECEIVE A DISTRIBUTION PURSUANT TO THE PLAN YOUR
COMPLETED BALLOT MUST BE RECEIVED AT THE BELOW ADDRESS BY FEBRUARY 22, 2012
("NFS ELECTION REPLY BY DATE").
NOTE: BALLOTS RECEIVED AFTER FEBRUARY 3, 2012 BUT BY FEBRUARY 22, 2012 WILL
STILL BE ABLE TO RECEIVE A DISTRIBUTION PURSUANT TO THE PLAN; HOWEVER THE VOTE
WILL NOT BE COUNTED.
The thing from on the letter from the creditors committee refers to creditors. On their ballot, they have to check the box giving the releases.
Thanks for the heads up! What due date are they using and is it vote by mail?
Fellow Fidelty clients; have you received your ballot from National Financial Services yet?
I agree. If you want to recover your investment and perhaps some gain, you need to be prepared to just stick it in a shoe box and check on it once a year.
Perhaps if someone can build a small business with the skeleton that is now left of WMI, over time you might get your money back. Depends on what price you paid for the shares you bought. Pre-seizure holders will never get there principal back. No one will live that long. However if you are in at a nickel, maybe some day you will double your money and get a dime.
Better read it closer. It does not say there will be significant recoveries. It says they will pursue recoveries. No guarantee they will ever get a dime and if they do, I imagine the settlements will be small in size. 10 million here and 10 million there. Not a windfall for shareholders. Proceeds will just be used by the company for operations, not distributed to shareholders.
There is no guarantee that the shares will be traded on any exchange including over the counter once issued. It possible that shares will not trade for some time. Up to the board to decide.
Based on the filings today (debtors response to DC objections and the motion to vacate), it appears this is pretty much over. The only drama from here on in is whether the Judge adjusts the percentage going to commons or leaves it alone. This thing is put to bed.
Also, for those that are so eagerly awaiting huge returns from the third party litigation that the trust may pursue after confirmation, you need to lower your expectations. Returns if any, will be limited to settlements what can be recovered from WMI D&O insurance (not much left of that) along with what might be able to be squeezed out of folks like GS or Deloitte. Those settlements if they happen will be in the 10s of millions, not billions.
Lastly, don't expect the reinsurance business to suddenly grow leaps and bounds through mergers and a cracker jack business model. This is a business right now that has no employees, no sales force, no marketing plan and almost nonexistent accounting. I am not sure what will happen to it. Don't count on the NOLs ever being exploited.
This is over. Que the sweepers to come in and clean up.
No. We can not go to court against JPMC and the FDIC. They are released from harm if the plan is confirmed.
You are confusing TPS securities with TPG's capital investment in WMI prior to the takeover. Two different things. TPS did not put money into WMI. TPS is a security purchased like preferred stock by investors that are now attempting to derail the confirmation. TPG stands for Texas Pacific Group, a private equity firm that lead a capital investment in April of 2008. You have your "TP's" mixed up.
Vote will be mail only. No fax and no email.
Voting packets will not be mailed until after the disclosure hearing in Jan. if you don't vote you don't get shares in Newco. However, after plan confirmation you can agree to grant releases before a deadline ( to be set). If you do that, then you will get shares
If you vote no, you will never get shares in newco. I guess what you do then is hire an attorney and sue. Good luck with that.
The question we should be asking is how many companies are there in the reinsurance business that are of around $150 million and smaller in valuation. If newco emerges and seeks merger candidates in order to use the NoLs, the candidates have to equal or smaller. How many could there be? I doubt very many.
Read the EC letter. He says exactly why he is happy with the settlement and therefore why he urges a yes vote to the new plan.
True. Then it begs the question: why is the EC telling us to vote for the plan?
That is what I mean. The 6 billion is not the value of the company. The NOLs could someday contribute to earnings of the company way down the road, but that is a crap shoot. The death spiral financing points to Newco being wound down in a bust out as soon as litigation trust business is finished. Those loaning the money will eventually control it by taking equity interests instead of interest. Classic bust out.
No. Newco has assets worth 140 million in ins premiums and will own NOLs that could be 6 billion in size. Way different than saying the co is worth 6 billion.
Yes. It is over. Full settlement of all issues and EC is 100% behind the terms. Urging a yes vote. Slam dunk confirmation.
No different than the hedge funds. Just a different way to exploit the system to make a little money. Everyone has an angle in this case, and there are no good guys or bad guys. Just folks trying to earn a buck.
As was often said on the Sopranos, "I just want to dip my beak in, just want a little taste"
Doesn't surprise me. This is what MW does for a living. Troll BK cases, stir up shareholders, work with lawyers to get himself named to committees and eventually boards for fees. Not illegal, but not noble.
No big deal. All the PORs had the disputed accounts going to WMI. That is the bulk of the money that will be used to pay creditors. Will be long gone and of no use to Newco.
The 1.7 billion are outstanding shares. Whether they are traded regularly is meaningless. They are registered to owners and street accounts. They exist, so that is the starting number. They will be further diluted by how many shares are created by creditors taking stock instead of cash.
From Reuters:
Equity committee counsel Edgar Sargent of Susman Godfrey said his clients are "very happy" with the new plan. In addition to the $75 million bondholder contribution to the reorganized company, other creditors are contributing $10 million. "The reorganized debtor is going to be well-capitalized, and we think there's now a chance for shareholders to receive real recovery," he said. (The reorganized company will likely "acquire or build assets in the financial or insurance spaces," Sargent said, although he cautioned that it's too early to say for sure.)
It says in the DS that all parties involved in the settlement agreed not to object to the confirmation. The EC agreed to support confirmation. There will be no objections from them.
Considering the odds of succeeding in litigation, this is probably pretty good. Disappointing if you wanted some kind of justice or windfall. Good if you wanted to own a runoff reinsurance company.
Basically what the EC accomplished was extracting 75 million to settle the IT claims. The rest is pretty much what they had in the bag in May.
Check out the waterfall in the DS. Common is estimated to recover a value of $57 million. Preferred get a value of $133 million.
Claims are allowed and settled by GSA. No net money to the estate or subtraction to the estate. Puff, gone.
No. This is a done deal. Will be rammed thru a quick confirmation.
Ok, lets see how this works. Common get 5% of Newco which the court agreed had a value of approx. $300 million. That is 15 million in value. There are 1.7 billion shares outstanding. That puts the current fair value of a share of common at 8 or 9 cents. Of course this doesn't take into account further dilution by creditors that choose to take stock instead of cash.