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@FredMiller @John and others...
Can someone please explain the document in normal language?
https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.globic.com/wamurmbssettlement/pdfs/DBNTC.WAMU%2520TIP%2520Petition%2520-%2520Notice%2520to%2520Holders%2520of%2520Petition%2520and%2520Hearing%252012.22.16.pdf&ved=2ahUKEwjb0sLEt42GAxXL8gIHHUJ5AG84FBAWegQICBAB&usg=AOvVaw0rk4TUBF339oDYrijzG4iq
after page 91
Quarterly reported holdings in Mr Cooper Group by Jpmorgan Chase & Co
https://stockzoa.com/ticker/coop/ownership/jpmorgan-chase-co/
Quarter filed Position value Share count Share price at filing
2023-12-31 $39M 595k 65.12
2023-09-30 $50M 930k 53.56
2023-06-30 $36M 703k 50.64
2023-03-31 $0 365k 0.00
2022-12-31 $23M 567k 40.13
2022-06-30 $15M 416k 36.74
2022-03-31 $25M 546k 46.26
2021-12-31 $22M 525k 41.62
2021-03-31 $30M 869k 34.65
2020-12-31 $23M 733k 31.03
2020-09-30 $20M 886k 22.24
2020-06-30 $13M 1.0M 12.44
2020-03-31 $4.5M 614k 7.33
2019-12-31 $1.3M 107k 12.50
2019-09-30 $1.3M 121k 10.62
2019-06-30 $164k 21k 7.84
2019-03-31 $174k 18k 9.58
2018-12-31 $222k 19k 11.68
XXXX = LBHI
the next 200 million shares distribution is not far away....
LODAS WMMRC,
i think it was no coincendence when Wallrath said to alice in 2019, "let us assume 10 Billions are coming back"....
the same number she mentioned in 2011...
Federal judgment rate on 10 Billion must be worth today?
or is it the lost of 40 Billion, which we can use as tax deferred assets in the balance which we can in the balance, that would be 10 Billion?
LODAS, take your focus on WMMRC,
here is maybe somethin for you... a post from 2011
Based on EC and Black Horse objections, I believe that the next major battle will be centered on the reorganized debtor -WMMRC, for the following reasons: (1) the court is well aware the fact that WMMRC is undervalued. She pointed out in her (1/7) Opinions a number of deficiencies in debtor’s valuation of WMMRC. It’s also my impression that she has doubts not just about debtors’ valuation, but their motives. (2) There are sizable NOLs available to the reorganized debtor, whether in the amount of $5.5B or in $17.8B. The court in no vague terms recognized at least $5+B might be available to WMMRC in the Opinions too. (She in fact facilitated the $5B NOLs to become reality by delaying her decision on POR in late 2010). (3) Recent revelation by EC via 2004 discovery that “multiple post petition expressions of interest” in WMMRC further confirmed that the reorganized debtor may have greater value than the debtors want the court and others to believe (Debtors Response contradicts EC statement. This just adds more reasons for thorough valuation cross-examinations). (4) The court ordered investigation of WMMRC valuation along with investigation of insider trading by SNH on 2/8. At 2/8 court hearing, the court indicated that “Well, let me posit this. The valuation comes back that the reorganized debtor is worth ten billion dollars. Isn't that something I have to take into consideration when I determine who is getting the equity in that entity and whether or not those creditors are receiving more than they're entitled to under the plan?” Obviously, the court was using a hypothetical figure ($10B) and posing a hypothetical question to SNH lawyers. But the court’s intent of fair distribution and equitable treatment of all involved parties (not just creditors) is clear, at least to this observer. (5) There are rooms for the court to apply FJR instead of default contract rate, which can also open the door for the equity to participate in WMMRC (or, as Black Horse suggested to use the fund from FJR to pay off Piers in full and install preferreds to be the owner of WMMRC.) For now, there is no guaranty that the court will apply FJR (as my understanding, there is a fair chance in BK that judges usually won’t). However, if the allegation of insider trading is proved through 2004 discovery, the application of FJR is most likely a sure thing. In this scenario, the attempt by the debtors/SNH to keep the equity away from WMMRC and grab the reorganized debtor for SNH will be further undermined, or even completely busted.
I am now starting to see what EC recent strategy since Dec. hearing look like. If we make comparisons between EC objection (11/19/2010) and its current objection (03/09), we can see that the 11/19 objection focused on “Releases” while addressing other issues more or less generally. As I said at that time (even earlier when ER came out on 11/01) that the Releases was the one issue that ER, EC, and Court can all agree upon, and therefore an easy and better field to explore effectively. EC clearly saw the Releases was one of the key issues that could shoot the POR down, and that was exactly what happened. The court agreed. Her denial order (to POR confirmation) was determined largely because of the illegality of overly expansive features of the Releases.
The Releases helped us stop the POR (for the time being), and the court left the field open for future law suits against JPMC and FDIC. However, with no organization and strong funding, it’s not impossible but very difficult for retail shareholders to fight costly and time-consuming legal battles against financial power houses and government entities. Both JPMC and FDIC know that. Sure, they want Releases. But the third party releases, in my view, are not much a threat or leverage to them for now. They continue to go along with the debtors and GSA.
.....
i dont know why, or what, but in the settlement agreement, they were talking about a payment date, but that i didnt found...
why wanted bair to go after wmmrc, why the federal judgment date, on something which has no value...
wmmrc was insuring 50% of a loss, of what.... has someboy put the retained assets in loans and these are insured, but then why the federal judgment rate?
Closing @ 54,30 $ today, then….
Again 25 Billions - Something to think about?
Quote tako11
I talked about the conference call and revealed a very valuable info to analyze
In my opinion the conference call gave us a hint about how much equity we have off balance sheet and I will explain why
Bellow is the interesting wording from the conference call
“Our owned FHA and VA books are relatively small, making up only 9% and 6%, respectively, of our total book. Also, our FHA and VA customers have substantial equity built up and low note rates, which binds very well for credit performance. And in fact, we saw sequential declines in delinquencies for both our FHA and VA portfolios during the quarter.
Kurt Johnson: Yes, Bose so Chris had mentioned the composition of the govi portfolio is 9% FHA and 6% VA. A lot of the originations we did, obviously, just like a lot of others were in 2020 through early 2022. But keep in mind that the original dates on largos were significantly earlier because those were streamlined rate-term refinance. So we have almost 60% of our FHA portfolio now has a market LTV of less than 60%.
And keep in mind, right, when most people originate an initial FHA, it's kind of at the 96.5% LTV. So we've got a lot of equity. And we're seeing pools trade with a lot of equity as well, and we'll be pretty disciplined about that. And we think there's an opportunity to layer in some current coupon into that as well without slowly expanding the risk of our overall portfolio.”
If we take their provided info and try to translate into value to see how much we expect
According to the released info, I see COOP has a minimum of $76b owned assets and an equity of $30b
Here how it is
The owned VHA = $853b (total book) x 9% = $76.7b
According to the released info 60% of the VHA has less than 60% LTV (loan to value) which means there is 40% equity in these loans
Equity = $76.7b x 40% = $30.7b
Assuming no other equity exists, I say we have at least $25b off balance sheet and $5b on balance sheet (including repurchased stock)
I see also it is consistent with the revelation of COOP owning 413m MSR
I hope whoever disagrees with this conclusion explains why and I will appreciate his input
I have to thank BISS for posting the Q&A and special thanks to BIGGRIFF for bringing up the 60% issue when he heard it at conference call
Good luck to all ..Tako
Reading Matter 2 - Why Banks are Not Allowed in Bankruptcy
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiuzNu0qfP5AhV9gP0HHfi0ClM4FBAWegQIJBAB&url=https%3A%2F%2Fscholarlycommons.law.wlu.edu%2Fcgi%2Fviewcontent.cgi%3Farticle%3D1023%26context%3Dwlulr&usg=AOvVaw2mMn2T9qtNV1UP0BPvqeTS
Reading Matter - JPMorgan Still Isn't Sure What It Bought in 2008
https://www.bloomberg.com/opinion/articles/2013-10-28/jpmorgan-still-isn-t-sure-what-it-bought-in-2008
Hopefully you are right
I think you got me wrong... or perhaps i wasnt clearly enough...
only those who were harmed till the day of seizure on 26.09.2008, everybody who bought after that, wasnt harmed anymore...
that is what happened in the fall of enron, when they stated F&R and recoveries only for those, who could prove, that he hold shares before the seizure... that was 25.09.2008....
the most of us, came afterwards....
I think in 2003 ENRON made his Reorganisation, but damages were only paid to investors before the seizure...
I hope I am wrong, but this is F&R for me...
ENRON Comparison...
if it goes the same, like on enron, which was stated as fair and reasonable, we haven't do discuss the DCR 20,777 billions....
"ENRON
Calculating shares of the $7.2 billion will be determined by a formula that factors in such things as the stock's purchase price and the type of stock bought.
At its height, Enron stock sold for as much as $90 per share, before plummeting to as low as $1 right before the company declared bankruptcy.
Under the plan, investors will get an average of $6.79 per share of common stock and an average of $168.50 per share of preferred stock.
To be eligible for the settlement, investors and shareholders needed to have bought Enron or Enron-related securities between Sept. 9, 1997 and Dec. 2, 2001."
That will be the end of this board, escrows payments etc... because 95% of this board, bougth their shares after bankruptcy...
but im still hoping for a different way....
Rules for a Chapter 11 Reorg...
I don't know if it ever was posted, but I'll leave just here
....
(1) An identity of interest between the debtor and the third party, such that a suit against the nondebtor is, in essence, a suit against the debtor or will deplete assets of the estate;
(2) Substantial contribution by the nondebtor of assets to the reorganization;
(3) The essential nature of the injunction to the reorganization to the extent that, without the injunction, there is little likelihood of success;
(4) An agreement by a substantial majority of creditors to support the injunction, specifically if the impacted class or classes “overwhelmingly” vote to accept the plan; and
(5) Provision in the plan for payment of all or substantially all of the claims of the class or classes affected by the injunction.
https://www.jonesday.com/en/insights/2011/04/in-re-washington-mutual-inc-delaware-bankruptcy-court-limits-debtors-release-of-third-parties
@ JusticeWillWin
1 Billion added for MSR in Q1 for 2022
do you remember your Post and the Balance Sheet from the FDIC website, lately posted by me for a period Ending December 2020???
Roughly 40 Billion Assets Related Equity Adjustments
2,5 % are 1 Billion ....
study and understand...
thats why i say, go back to the posts oh wwhatthe, he described the whole process, what is going on, perfectly....
in february/march 2012 there was an inception balance in mor3...
it stated that the preffs have a claim of approx 7,5 billion and the q's of approx. 13,0 billion.
the costs to benefit from the reorg nols were subtracted from originally claim
Shareholders' equity:
P: 7,498,857 (108,750) (h) (7,390,107 )
C: 13,088,962 (36,250 ) (h) (13,052,712 )
these claims got an interest for 1,95% per year, first since 2012,
everything what ist left over, after the preffs and commons claim including interest get, will be divided 75/25, but there will be nothing over, cause nothing is coming back...
so the retained assets in the mor 3 of approx. 20B, which was distributed to the dcr (your honor, the reatined assets can be carried on, they can go through) will be free after 10 years after 19.03.2012, because on 20.03.2022 all claims will be barred
thats the normal process and not more.... the retained assets which are cleary there and where always stated in the q's in the k's and in the mor3, where reserved for claims, like marta 20b, which failed:)
that brings us to the present tense...
p's including interest of approx 20% after 10 years makes p 1200 $ = in whole roughly 9 Billion..... thats why there we reserved 10 mio Preffs in Mr. Cooper
and the rest of approx. 11B are going to the commons, there are still 225.000.000 shares available in Mr. Cooper, we need roughly 50$ o fullfill the 11B
that will leave for the escrow commons, about 10 $
just stay Fair & Reasonable
40,02
but the rule 425 wasn´t marked/checked in the report
Hi Az... One Question...
What about the FV or the baseline of the interest?
Do you think, we will geht new shares for them?
P's = 1.000 $ + interest ca. 860 $
Q's = ca. 26 $ + interest ca. 18,75 $
The interests belonging to a base value? What will happen to the base value?
Nice to hear from you
Thank You
JPM Wamu interesting summary
https://ritholtz.com/2013/03/jpm-wamu/
Planet Paprika
That is the Date and the time i downloaded the document...
In the document its states clearly That the Trust got
Voluntarily cancelled by bny mellon Trust Delaware on 20. April 2012 and no Tax issues are Open
That means, what we all believed its false
There is no Washington mutual Capital Trust anymore, within no interests generating
What i find curious is, That in you Google Mr Cooper group subsidiaries you will find still Washington mutual Capital Trust
Planet Paprika ...
I postet it on Facebook on wmihsafe....
Its a pdf, dont know how to Upload ist here...
But ist clearly states That the Washington mutual Capital Trust got cancelled by bny mellon in April 2012
You can send me a pm with your mail and i can send you the pdf, for which i paid 20 $ at
https://icis.corp.delaware.gov/ecorp2/account/login?returnUrl=%2Faccount%2Fmy-ecorp
Washington Mutual Capital Trust I cancelled
State Of Delaware
Entity Details
File Number: 3383458
Entity Name:
Entity Kind:
Residency:
Status:
Incorporation Date / Formation Date:
Entity Type:
State:
Status Date:
WASHINGTON MUTUAL CAPITAL TRUST 2001
Statutory Trust
Domestic
Voluntarily Cancelled
General
4/23/2001
DELAWARE
4/20/2012
Tax Information
Last AnnualReport Filed:
Annual Tax Assessment:
Tax Due:
Total Authorized Shares:
Registered Agent Information
Name:
Address:
City:
State:
Phone:
Country:
Postal Code:
BNY MELLON TRUST OF DELAWARE
301 BELLEVUE PARKWAY 3RD FLOOR
WILMINGTON
DE 19809
4/12/2021 9:58:11AM
Filing History (Last 5 Filings)
Seq Description No of Pages Filing Date Filing Time Effective Date
mm/dd/yyyy mm/dd/yyyy
1 Cancellation; Trust,GP,LP,LLC,RSE 1 4/20/2012 8:20 AM 4/20/2012
2 Trust 1 4/23/2001 8:30 AM 4/23/2001
Newflow.... just as a reminder.... today ist easier to unterstand it...
Read ist again....
https://www.sbroker.de/pdf/Washington-Mutual-Chapter11.pdf
Special Purpose Vehicles in Bankruptcy Litigation - intresting Reading
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjCqf6puuDvAhVDhP0HHWWRCC4QFjAAegQIAhAD&url=https%3A%2F%2Fscholarlycommons.law.hofstra.edu%2Fcgi%2Fviewcontent.cgi%3Farticle%3D2656%26context%3Dhlr&usg=AOvVaw2TSOYTaGRTzkOvZ0_xYsX3
PlanetPaprika Page 51 from Stockholders Meeting...
Equity Compensation Plan Information
The following table sets forth information as of December 31, 2020, with respect to shares of common stock that may be issued under our Incentive
Plan:
Plan Category
Number of Securities
to be Issued Upon
Exercise of
Outstanding Options,
Warrants, and Rights
Weighted Average
Exercise Price of
Outstanding Options,
Warrants and Rights
Number of Securities
Available for Future
Issuance Under Equity
Compensation Plans
Equity Compensation Plans approved by stockholders(1) — — 17,906,422
Equity Compensation Plans not approved by stockholders — — —
Total — — 17,906,422
(1) For additional information, please see Note 14 to the Consolidated Financial Statements, “Stockholders Equity and Employee Benefit Plans” in our Annual Report on
Form 10-K for the year ended December 31, 2020.
51
Chapter 11 - Bankruptcy Basics
https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
Chapter 11 - Bankruptcy Basics
This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.
Background
A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.
An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.
How Chapter 11 Works
A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition must adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). If the debtor is an individual (or husband and wife), there are additional document filing requirements. Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.11 U.S.C. § 521. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). (The Official Forms are not available from the court, but may be purchased at legal stationery stores or downloaded from the Internet at www.uscourts.gov/bkforms/index.html.)
The courts are required to charge a $1,167 case filing fee and a $550 miscellaneous administrative fee. The fees must be paid to the clerk of the court upon filing or may, with the court's permission, be paid by individual debtors in installments. 28 U.S.C. § 1930(a); Fed. R. Bankr. P. 1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8. Fed. R. Bankr. P. 1006(b) limits to four the number of installments for the filing fee. The final installment must be paid not later than 120 days after filing the petition. For cause shown, the court may extend the time of any installment, provided that the last installment is paid not later than 180 days after the filing of the petition. Fed. R. Bankr. P. 1006(b). The $550 administrative fee may be paid in installments in the same manner as the filing fee. If a joint petition is filed, only one filing fee and one administrative fee are charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case. 11 U.S.C. § 1112(b)(10).
The voluntary petition will include standard information concerning the debtor's name(s), social security number or tax identification number, residence, location of principal assets (if a business), the debtor's plan or intention to file a plan, and a request for relief under the appropriate chapter of the Bankruptcy Code. Upon filing a voluntary petition for relief under chapter 11 or, in an involuntary case, the entry of an order for relief, the debtor automatically assumes an additional identity as the "debtor in possession." 11 U.S.C. § 1101. The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. The appointment or election of a trustee occurs only in a small number of cases. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. 11 U.S.C. § 1107(a).
Generally, a written disclosure statement and a plan of reorganization must be filed with the court. 11 U.S.C. §§ 1121, 1125. The disclosure statement is a document that must contain information concerning the assets, liabilities, and business affairs of the debtor sufficient to enable a creditor to make an informed judgment about the debtor's plan of reorganization. 11 U.S.C. § 1125. The information required is governed by judicial discretion and the circumstances of the case. In a "small business case" (discussed below) the debtor may not need to file a separate disclosure statement if the court determines that adequate information is contained in the plan. 11 U.S.C. § 1125(f). The contents of the plan must include a classification of claims and must specify how each class of claims will be treated under the plan. 11 U.S.C. § 1123. Creditors whose claims are "impaired," i.e., those whose contractual rights are to be modified or who will be paid less than the full value of their claims under the plan, vote on the plan by ballot. 11 U.S.C. § 1126. After the disclosure statement is approved by the court and the ballots are collected and tallied, the court will conduct a confirmation hearing to determine whether to confirm the plan. 11 U.S.C. § 1128.
In the case of individuals, chapter 11 bears some similarities to chapter 13. For example, property of the estate for an individual debtor includes the debtor's earnings and property acquired by the debtor after filing until the case is closed, dismissed or converted; funding of the plan may be from the debtor's future earnings; and the plan cannot be confirmed over a creditor's objection without committing all of the debtor's disposable income over five years unless the plan pays the claim in full, with interest, over a shorter period of time. 11 U.S.C. §§ 1115, 1123(a)(8), 1129(a)(15).
The Chapter 11 Debtor in Possession
Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. A corporation exists separate and apart from its owners, the stockholders. The chapter 11 bankruptcy case of a corporation (corporation as debtor) does not put the personal assets of the stockholders at risk other than the value of their investment in the company's stock. A sole proprietorship (owner as debtor), on the other hand, does not have an identity separate and distinct from its owner(s). Accordingly, a bankruptcy case involving a sole proprietorship includes both the business and personal assets of the owners-debtors. Like a corporation, a partnership exists separate and apart from its partners. In a partnership bankruptcy case (partnership as debtor), however, the partners' personal assets may, in some cases, be used to pay creditors in the bankruptcy case or the partners, themselves, may be forced to file for bankruptcy protection.
Section 1107 of the Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee or bankruptcy administrator (discussed below), such as monthly operating reports. 11 U.S.C. §§ 1106, 1107; Fed. R. Bankr. P. 2015(a). The debtor in possession also has many of the other powers and duties of a trustee, including the right, with the court's approval, to employ attorneys, accountants, appraisers, auctioneers, or other professional persons to assist the debtor during its bankruptcy case. Other responsibilities include filing tax returns and reports which are either necessary or ordered by the court after confirmation, such as a final accounting. The U.S. trustee is responsible for monitoring the compliance of the debtor in possession with the reporting requirements.
Railroad reorganizations have specific requirements under subsection IV of chapter 11, which will not be addressed here. In addition, stock and commodity brokers are prohibited from filing under chapter 11 and are restricted to chapter 7. 11 U.S.C. § 109(d).
The U.S. trustee or bankruptcy administrator
The U.S. trustee plays a major role in monitoring the progress of a chapter 11 case and supervising its administration. The U.S. trustee is responsible for monitoring the debtor in possession's operation of the business and the submission of operating reports and fees. Additionally, the U.S. trustee monitors applications for compensation and reimbursement by professionals, plans and disclosure statements filed with the court, and creditors' committees. The U.S. trustee conducts a meeting of the creditors, often referred to as the "section 341 meeting," in a chapter 11 case. 11 U.S.C. § 341. The U.S. trustee and creditors may question the debtor under oath at the section 341 meeting concerning the debtor's acts, conduct, property, and the administration of the case.
The U.S. trustee also imposes certain requirements on the debtor in possession concerning matters such as reporting its monthly income and operating expenses, establishing new bank accounts, and paying current employee withholding and other taxes. By law, the debtor in possession must pay a quarterly fee to the U.S. trustee for each quarter of a year until the case is converted or dismissed. 28 U.S.C. § 1930(a)(6). The amount of the fee, which may range from $325 to $30,000, depends on the amount of the debtor's disbursements during each quarter. Should a debtor in possession fail to comply with the reporting requirements of the U.S. trustee or orders of the bankruptcy court, or fail to take the appropriate steps to bring the case to confirmation, the U.S. trustee may file a motion with the court to have the debtor's chapter 11 case converted to another chapter of the Bankruptcy Code or to have the case dismissed.
In North Carolina and Alabama, bankruptcy administrators perform similar functions that U.S. trustees perform in the remaining forty-eight states. The bankruptcy administrator program is administered by the Administrative Office of the United States Courts, while the U.S. trustee program is administered by the Department of Justice. For purposes of this publication, references to U.S. trustees are also applicable to bankruptcy administrators.
Creditors' Committees
Creditors' committees can play a major role in chapter 11 cases. The committee is appointed by the U.S. trustee and ordinarily consists of unsecured creditors who hold the seven largest unsecured claims against the debtor. 11 U.S.C. § 1102. Among other things, the committee: consults with the debtor in possession on administration of the case; investigates the debtor's conduct and operation of the business; and participates in formulating a plan. 11 U.S.C. § 1103. A creditors' committee may, with the court's approval, hire an attorney or other professionals to assist in the performance of the committee's duties. A creditors' committee can be an important safeguard to the proper management of the business by the debtor in possession.
The Small Business Case and the Small Business Debtor
In some smaller cases the U.S. trustee may be unable to find creditors willing to serve on a creditors' committee, or the committee may not be actively involved in the case. The Bankruptcy Code addresses this issue by treating a "small business case" somewhat differently than a regular bankruptcy case. A small business case is defined as a case with a "small business debtor." 11 U.S.C. § 101(51C). Determination of whether a debtor is a "small business debtor" requires application of a two-part test. First, the debtor must be engaged in commercial or business activities (other than primarily owning or operating real property) with total non-contingent liquidated secured and unsecured debts of $2,566,050 or less. Second, the debtor's case must be one in which the U.S. trustee has not appointed a creditors' committee, or the court has determined the creditors' committee is insufficiently active and representative to provide oversight of the debtor. 11 U.S.C. § 101(51D).
In a small business case, the debtor in possession must, among other things, attach the most recently prepared balance sheet, statement of operations, cash-flow statement and most recently filed tax return to the petition or provide a statement under oath explaining the absence of such documents and must attend court and the U.S. trustee meeting through senior management personnel and counsel. The small business debtor must make ongoing filings with the court concerning its profitability and projected cash receipts and disbursements, and must report whether it is in compliance with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and whether it has paid its taxes and filed its tax returns. 11 U.S.C. §§ 308, 1116.
In contrast to other chapter 11 debtors, the small business debtor is subject to additional oversight by the U.S. trustee. Early in the case, the small business debtor must attend an "initial interview" with the U.S. trustee at which time the U.S. trustee will evaluate the debtor's viability, inquire about the debtor's business plan, and explain certain debtor obligations including the debtor's responsibility to file various reports. 28 U.S.C. § 586(a)(7). The U.S. trustee will also monitor the activities of the small business debtor during the case to identify as promptly as possible whether the debtor will be unable to confirm a plan.
Because certain filing deadlines are different and extensions are more difficult to obtain, a case designated as a small business case normally proceeds more quickly than other chapter 11 cases. For example, only the debtor may file a plan during the first 180 days of a small business case. 11 U.S.C. § 1121(e). This "exclusivity period" may be extended by the court, but only to 300 days, and only if the debtor demonstrates by a preponderance of the evidence that the court will confirm a plan within a reasonable period of time. When the case is not a small business case, however, the court may extend the exclusivity period "for cause" up to 18 months.
The Single Asset Real Estate Debtor
Single asset real estate debtors are subject to special provisions of the Bankruptcy Code. The term "single asset real estate" is defined as "a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental." 11 U.S.C. § 101(51B). The Bankruptcy Code provides circumstances under which creditors of a single asset real estate debtor may obtain relief from the automatic stay which are not available to creditors in ordinary bankruptcy cases. 11 U.S.C. § 362(d). On request of a creditor with a claim secured by the single asset real estate and after notice and a hearing, the court will grant relief from the automatic stay to the creditor unless the debtor files a feasible plan of reorganization or begins making interest payments to the creditor within 90 days from the date of the filing of the case, or within 30 days of the court's determination that the case is a single asset real estate case. The interest payments must be equal to the non-default contract interest rate on the value of the creditor's interest in the real estate. 11 U.S.C. § 362(d)(3).
Appointment or Election of a Case Trustee
Although the appointment of a case trustee is a rarity in a chapter 11 case, a party in interest or the U.S. trustee can request the appointment of a case trustee or examiner at any time prior to confirmation in a chapter 11 case. The court, on motion by a party in interest or the U.S. trustee and after notice and hearing, shall order the appointment of a case trustee for cause, including fraud, dishonesty, incompetence, or gross mismanagement, or if such an appointment is in the interest of creditors, any equity security holders, and other interests of the estate. 11 U.S.C. § 1104(a). Moreover, the U.S. trustee is required to move for appointment of a trustee if there are reasonable grounds to believe that any of the parties in control of the debtor "participated in actual fraud, dishonesty or criminal conduct in the management of the debtor or the debtor's financial reporting." 11 U.S.C. § 1104(e). The trustee is appointed by the U.S. trustee, after consultation with parties in interest and subject to the court's approval. Fed. R. Bankr. P. 2007.1. Alternatively, a trustee in a case may be elected if a party in interest requests the election of a trustee within 30 days after the court orders the appointment of a trustee. In that instance, the U.S. trustee convenes a meeting of creditors for the purpose of electing a person to serve as trustee in the case. 11 U.S.C. § 1104(b).
The case trustee is responsible for management of the property of the estate, operation of the debtor's business, and, if appropriate, the filing of a plan of reorganization. Section 1106 of the Bankruptcy Code requires the trustee to file a plan "as soon as practicable" or, alternatively, to file a report explaining why a plan will not be filed or to recommend that the case be converted to another chapter or dismissed. 11 U.S.C. § 1106(a)(5).
Upon the request of a party in interest or the U.S. trustee, the court may terminate the trustee's appointment and restore the debtor in possession to management of bankruptcy estate at any time before confirmation.11 U.S.C. § 1105.
The Role of an Examiner
The appointment of an examiner in a chapter 11 case is rare. The role of an examiner is generally more limited than that of a trustee. The examiner is authorized to perform the investigatory functions of the trustee and is required to file a statement of any investigation conducted. If ordered to do so by the court, however, an examiner may carry out any other duties of a trustee that the court orders the debtor in possession not to perform. 11 U.S.C. § 1106. Each court has the authority to determine the duties of an examiner in each particular case. In some cases, the examiner may file a plan of reorganization, negotiate or help the parties negotiate, or review the debtor's schedules to determine whether some of the claims are improperly categorized. Sometimes, the examiner may be directed to determine if objections to any proofs of claim should be filed or whether causes of action have sufficient merit so that further legal action should be taken. The examiner may not subsequently serve as a trustee in the case. 11 U.S.C. § 321.
The Automatic Stay
The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. As with cases under other chapters of the Bankruptcy Code, a stay of creditor actions against the chapter 11 debtor automatically goes into effect when the bankruptcy petition is filed. 11 U.S.C. § 362(a). The filing of a petition, however, does not operate as a stay for certain types of actions listed under 11 U.S.C. § 362(b). The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation.
Under specific circumstances, the secured creditor can obtain an order from the court granting relief from the automatic stay. For example, when the debtor has no equity in the property and the property is not necessary for an effective reorganization, the secured creditor can seek an order of the court lifting the stay to permit the creditor to foreclose on the property, sell it, and apply the proceeds to the debt. 11 U.S.C. § 362(d).
The Bankruptcy Code permits applications for fees to be made by certain professionals during the case. Thus, a trustee, a debtor's attorney, or any professional person appointed by the court may apply to the court at intervals of 120 days for interim compensation and reimbursement payments. In very large cases with extensive legal work, the court may permit more frequent applications. Although professional fees may be paid if authorized by the court, the debtor cannot make payments to professional creditors on prepetition obligations, i.e., obligations which arose before the filing of the bankruptcy petition. The ordinary expenses of the ongoing business, however, continue to be paid.
Who Can File a Plan
The debtor (unless a "small business debtor") has a 120-day period during which it has an exclusive right to file a plan. 11 U.S.C. § 1121(b). This exclusivity period may be extended or reduced by the court. But in no event may the exclusivity period, including all extensions, be longer than 18 months. 11 U.S.C. § 1121(d). After the exclusivity period has expired, a creditor or the case trustee may file a competing plan. The U.S. trustee may not file a plan. 11 U.S.C. § 307.
A chapter 11 case may continue for many years unless the court, the U.S. trustee, the committee, or another party in interest acts to ensure the case's timely resolution. The creditors' right to file a competing plan provides incentive for the debtor to file a plan within the exclusivity period and acts as a check on excessive delay in the case.
Avoidable Transfers
The debtor in possession or the trustee, as the case may be, has what are called "avoiding" powers. These powers may be used to undo a transfer of money or property made during a certain period of time before the filing of the bankruptcy petition. By avoiding a particular transfer of property, the debtor in possession can cancel the transaction and force the return or "disgorgement" of the payments or property, which then are available to pay all creditors. Generally, and subject to various defenses, the power to avoid transfers is effective against transfers made by the debtor within 90 days before filing the petition. But transfers to "insiders" (i.e., relatives, general partners, and directors or officers of the debtor) made up to a year before filing may be avoided. 11 U.S.C. §§ 101(31), 101(54), 547, 548. In addition, under 11 U.S.C. § 544, the trustee is authorized to avoid transfers under applicable state law, which often provides for longer time periods. Avoiding powers prevent unfair prepetition payments to one creditor at the expense of all other creditors.
Cash Collateral, Adequate Protection, and Operating Capital
Although the preparation, confirmation, and implementation of a plan of reorganization is at the heart of a chapter 11 case, other issues may arise that must be addressed by the debtor in possession. The debtor in possession may use, sell, or lease property of the estate in the ordinary course of its business, without prior approval, unless the court orders otherwise. 11 U.S.C. § 363(c). If the intended sale or use is outside the ordinary course of its business, the debtor must obtain permission from the court.
A debtor in possession may not use "cash collateral" without the consent of the secured party or authorization by the court, which must first examine whether the interest of the secured party is adequately protected. 11 U.S.C. § 363. Section 363 defines "cash collateral" as cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents, whenever acquired, in which the estate and an entity other than the estate have an interest. It includes the proceeds, products, offspring, rents, or profits of property and the fees, charges, accounts or payments for the use or occupancy of rooms and other public facilities in hotels, motels, or other lodging properties subject to a creditor's security interest.
When "cash collateral" is used (spent), the secured creditors are entitled to receive additional protection under section 363 of the Bankruptcy Code. The debtor in possession must file a motion requesting an order from the court authorizing the use of the cash collateral. Pending consent of the secured creditor or court authorization for the debtor in possession's use of cash collateral, the debtor in possession must segregate and account for all cash collateral in its possession. 11 U.S.C. § 363(c)(4). A party with an interest in property being used by the debtor may request that the court prohibit or condition this use to the extent necessary to provide "adequate protection" to the creditor.
Adequate protection may be required to protect the value of the creditor's interest in the property being used by the debtor in possession. This is especially important when there is a decrease in value of the property. The debtor may make periodic or lump sum cash payments, or provide an additional or replacement lien that will result in the creditor's property interest being adequately protected. 11 U.S.C. § 361.
When a chapter 11 debtor needs operating capital, it may be able to obtain it from a lender by giving the lender a court-approved "superpriority" over other unsecured creditors or a lien on property of the estate. 11 U.S.C. § 364.
Motions
Before confirmation of a plan, several activities may take place in a chapter 11 case. Continued operation of the debtor's business may lead to the filing of a number of contested motions. The most common are those seeking relief from the automatic stay, the use of cash collateral, or to obtain credit. There may also be litigation over executory (i.e., unfulfilled) contracts and unexpired leases and the assumption or rejection of those executory contracts and unexpired leases by the debtor in possession. 11 U.S.C. § 365. Delays in formulating, filing, and obtaining confirmation of a plan often prompt creditors to file motions for relief from stay, to convert the case to chapter 7, or to dismiss the case altogether.
Adversary Proceedings
Frequently, the debtor in possession will institute a lawsuit, known as an adversary proceeding, to recover money or property for the estate. Adversary proceedings may take the form of lien avoidance actions, actions to avoid preferences, actions to avoid fraudulent transfers, or actions to avoid post-petition transfers. These proceedings are governed by Part VII of the Federal Rules of Bankruptcy Procedure. At times, a creditors' committee may be authorized by the bankruptcy court to pursue these actions against insiders of the debtor if the plan provides for the committee to do so or if the debtor has refused a demand to do so. Creditors may also initiate adversary proceedings by filing complaints to determine the validity or priority of a lien, revoke an order confirming a plan, determine the dischargeability of a debt, obtain an injunction, or subordinate a claim of another creditor.
Claims
The Bankruptcy Code defines a claim as: (1) a right to payment; (2) or a right to an equitable remedy for a failure of performance if the breach gives rise to a right to payment. 11 U.S.C. § 101(5). Generally, any creditor whose claim is not scheduled (i.e., listed by the debtor on the debtor's schedules) or is scheduled as disputed, contingent, or unliquidated must file a proof of claim (and attach evidence documenting the claim) in order to be treated as a creditor for purposes of voting on the plan and distribution under it. Fed. R. Bankr. P. 3003(c)(2). But filing a proof of claim is not necessary if the creditor's claim is scheduled (but is not listed as disputed, contingent, or unliquidated by the debtor) because the debtor's schedules are deemed to constitute evidence of the validity and amount of those claims. 11 U.S.C. § 1111. If a scheduled creditor chooses to file a claim, a properly filed proof of claim supersedes any scheduling of that claim. Fed. R. Bankr. P. 3003(c)(4). It is the responsibility of the creditor to determine whether the claim is accurately listed on the debtor's schedules. The debtor must provide notification to those creditors whose names are added and whose claims are listed as a result of an amendment to the schedules. The notification also should advise such creditors of their right to file proofs of claim and that their failure to do so may prevent them from voting upon the debtor's plan of reorganization or participating in any distribution under that plan. When a debtor amends the schedule of liabilities to add a creditor or change the status of any claims to disputed, contingent, or unliquidated, the debtor must provide notice of the amendment to any entity affected. Fed. R. Bankr. P. 1009(a).
Equity Security Holders
An equity security holder is a holder of an equity security of the debtor. Examples of an equity security are a share in a corporation, an interest of a limited partner in a limited partnership, or a right to purchase, sell, or subscribe to a share, security, or interest of a share in a corporation or an interest in a limited partnership. 11 U.S.C. § 101(16), (17). An equity security holder may vote on the plan of reorganization and may file a proof of interest, rather than a proof of claim. A proof of interest is deemed filed for any interest that appears in the debtor's schedules, unless it is scheduled as disputed, contingent, or unliquidated. 11 U.S.C. § 1111. An equity security holder whose interest is not scheduled or is scheduled as disputed, contingent, or unliquidated must file a proof of interest in order to be treated as a creditor for purposes of voting on the plan and distribution under it. Fed. R. Bankr. P. 3003(c)(2). A properly filed proof of interest supersedes any scheduling of that interest. Fed. R. Bankr. P. 3003(c)(4). Generally, most of the provisions that apply to proofs of claim, as discussed above, are also applicable to proofs of interest.
Conversion or Dismissal
A debtor in a case under chapter 11 has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 unless: (1) the debtor is not a debtor in possession; (2) the case originally was commenced as an involuntary case under chapter 11; or (3) the case was converted to a case under chapter 11 other than at the debtor's request. 11 U.S.C. § 1112(a). A debtor in a chapter 11 case does not have an absolute right to have the case dismissed upon request.
A party in interest may file a motion to dismiss or convert a chapter 11 case to a chapter 7 case "for cause." Generally, if cause is established after notice and hearing, the court must convert or dismiss the case (whichever is in the best interests of creditors and the estate) unless it specifically finds that the requested conversion or dismissal is not in the best interest of creditors and the estate. 11 U.S.C. § 1112(b). Alternatively, the court may decide that appointment of a chapter 11 trustee or an examiner is in the best interests of creditors and the estate. 11 U.S.C. § 1104(a)(3). Section 1112(b)(4) of the Bankruptcy Code sets forth numerous examples of cause that would support dismissal or conversion. For example, the moving party may establish cause by showing that there is substantial or continuing loss to the estate and the absence of a reasonable likelihood of rehabilitation; gross mismanagement of the estate; failure to maintain insurance that poses a risk to the estate or the public; or unauthorized use of cash collateral that is substantially harmful to a creditor.
Cause for dismissal or conversion also includes an unexcused failure to timely compliance with reporting and filing requirements; failure to attend the meeting of creditors or attend an examination without good cause; failure to timely provide information to the U.S. trustee; and failure to timely pay post-petition taxes or timely file post-petition returns Fed. R. Bankr. P. 2004. Additionally, failure to file a disclosure statement or to file and confirm a plan within the time fixed by the Bankruptcy Code or order of the court; inability to effectuate a plan; denial or revocation of confirmation; inability to consummate a confirmed plan represent "cause" for dismissal under the statute. In an individual case, failure of the debtor to pay post-petition domestic support obligations constitutes "cause" for dismissal or conversion.
Section 1112(c) of the Bankruptcy Code provides an important exception to the conversion process in a chapter 11 case. Under this provision, the court is prohibited from converting a case involving a farmer or charitable institution to a liquidation case under chapter 7 unless the debt or requests the conversion.
The Disclosure Statement
Generally, the debtor (or any plan proponent) must file and get court approval of a written disclosure statement before there can be a vote on the plan of reorganization. The disclosure statement must provide "adequate information" concerning the affairs of the debtor to enable the holder of a claim or interest to make an informed judgment about the plan. 11 U.S.C. § 1125. In a small business case, however, the court may determine that the plan itself contains adequate information and that a separate disclosure statement is unnecessary. 11 U.S.C. § 1125(f). After the disclosure statement is filed, the court must hold a hearing to determine whether the disclosure statement should be approved. Acceptance or rejection of a plan usually cannot be solicited until the court has first approved the written disclosure statement. 11 U.S.C. § 1125(b). An exception to this rule exists if the initial solicitation of the party occurred before the bankruptcy filing, as would be the case in so-called "prepackaged" bankruptcy plans (i.e., where the debtor negotiates a plan with significant creditor constituencies before filing for bankruptcy). Continued post-filing solicitation of such parties is not prohibited. After the court approves the disclosure statement, the debtor or proponent of a plan can begin to solicit acceptances of the plan, and creditors may also solicit rejections of the plan.
Upon approval of a disclosure statement, the plan proponent must mail the following to the U.S. trustee and all creditors and equity security holders: (1) the plan, or a court approved summary of the plan; (2) the disclosure statement approved by the court; (3) notice of the time within which acceptances and rejections of the plan may be filed; and (4) such other information as the court may direct, including any opinion of the court approving the disclosure statement or a court-approved summary of the opinion. Fed. R. Bankr. P. 3017(d). In addition, the debtor must mail to the creditors and equity security holders entitled to vote on the plan or plans: (1) notice of the time fixed for filing objections; (2) notice of the date and time for the hearing on confirmation of the plan; and (3) a ballot for accepting or rejecting the plan and, if appropriate, a designation for the creditors to identify their preference among competing plans. Id. But in a small business case, the court may conditionally approve a disclosure statement subject to final approval after notice and a combined disclosure statement/plan confirmation hearing. 11 U.S.C. § 1125(f).
Acceptance of the Plan of Reorganization
As noted earlier, only the debtor may file a plan of reorganization during the first 120-day period after the petition is filed (or after entry of the order for relief, if an involuntary petition was filed). The court may grant extension of this exclusive period up to 18 months after the petition date. In addition, the debtor has 180 days after the petition date or entry of the order for relief to obtain acceptances of its plan. 11 U.S.C. § 1121. The court may extend (up to 20 months) or reduce this acceptance exclusive period for cause. 11 U.S.C. § 1121(d). In practice, debtors typically seek extensions of both the plan filing and plan acceptance deadlines at the same time so that any order sought from the court allows the debtor two months to seek acceptances after filing a plan before any competing plan can be filed.
If the exclusive period expires before the debtor has filed and obtained acceptance of a plan, other parties in interest in a case, such as the creditors' committee or a creditor, may file a plan. Such a plan may compete with a plan filed by another party in interest or by the debtor. If a trustee is appointed, the trustee must file a plan, a report explaining why the trustee will not file a plan, or a recommendation for conversion or dismissal of the case. 11 U.S.C. § 1106(a)(5). A proponent of a plan is subject to the same requirements as the debtor with respect to disclosure and solicitation.
In a chapter 11 case, a liquidating plan is permissible. Such a plan often allows the debtor in possession to liquidate the business under more economically advantageous circumstances than a chapter 7 liquidation. It also permits the creditors to take a more active role in fashioning the liquidation of the assets and the distribution of the proceeds than in a chapter 7 case.
Section 1123(a) of the Bankruptcy Code lists the mandatory provisions of a chapter 11 plan, and section 1123(b) lists the discretionary provisions. Section 1123(a)(1) provides that a chapter 11 plan must designate classes of claims and interests for treatment under the reorganization. Generally, a plan will classify claim holders as secured creditors, unsecured creditors entitled to priority, general unsecured creditors, and equity security holders.
Under section 1126(c) of the Bankruptcy Code, an entire class of claims is deemed to accept a plan if the plan is accepted by creditors that hold at least two-thirds in amount and more than one-half in number of the allowed claims in the class. Under section 1129(a)(10), if there are impaired classes of claims, the court cannot confirm a plan unless it has been accepted by at least one class of non-insiders who hold impaired claims (i.e., claims that are not going to be paid completely or in which some legal, equitable, or contractual right is altered). Moreover, under section 1126(f), holders of unimpaired claims are deemed to have accepted the plan.
Under section 1127(a) of the Bankruptcy Code, the plan proponent may modify the plan at any time before confirmation, but the plan as modified must meet all the requirements of chapter 11. When there is a proposed modification after balloting has been conducted, and the court finds after a hearing that the proposed modification does not adversely affect the treatment of any creditor who has not accepted the modification in writing, the modification is deemed to have been accepted by all creditors who previously accepted the plan. Fed. R. Bankr. P. 3019. If it is determined that the proposed modification does have an adverse effect on the claims of non-consenting creditors, then another balloting must take place.
Because more than one plan may be submitted to the creditors for approval, every proposed plan and modification must be dated and identified with the name of the entity or entities submitting the plan or modification. Fed. R. Bankr. P. 3016(b). When competing plans are presented that meet the requirements for confirmation, the court must consider the preferences of the creditors and equity security holders in determining which plan to confirm.
Any party in interest may file an objection to confirmation of a plan. The Bankruptcy Code requires the court, after notice, to hold a hearing on confirmation of a plan. If no objection to confirmation has been timely filed, the Bankruptcy Code allows the court to determine whether the plan has been proposed in good faith and according to law. Fed. R. Bankr. P. 3020(b)(2). Before confirmation can be granted, the court must be satisfied that there has been compliance with all the other requirements of confirmation set forth in section 1129 of the Bankruptcy Code, even in the absence of any objections. In order to confirm the plan, the court must find, among other things, that: (1) the plan is feasible; (2) it is proposed in good faith; and (3) the plan and the proponent of the plan are in compliance with the Bankruptcy Code. In order to satisfy the feasibility requirement, the court must find that confirmation of the plan is not likely to be followed by liquidation (unless the plan is a liquidating plan) or the need for further financial reorganization.
The Discharge
Section 1141(d)(1) generally provides that confirmation of a plan discharges a debtor from any debt that arose before the date of confirmation. After the plan is confirmed, the debtor is required to make plan payments and is bound by the provisions of the plan of reorganization. The confirmed plan creates new contractual rights, replacing or superseding pre-bankruptcy contracts.
There are, of course, exceptions to the general rule that an order confirming a plan operates as a discharge. Confirmation of a plan of reorganization discharges any type of debtor – corporation, partnership, or individual – from most types of prepetition debts. It does not, however, discharge an individual debtor from any debt made nondischargeable by section 523 of the Bankruptcy Code. (1) Moreover, except in limited circumstances, a discharge is not available to an individual debtor unless and until all payments have been made under the plan. 11 U.S.C. § 1141(d)(5). Confirmation does not discharge the debtor if the plan is a liquidation plan, as opposed to one of reorganization, unless the debtor is an individual. When the debtor is an individual, confirmation of a liquidation plan will result in a discharge (after plan payments are made) unless grounds would exist for denying the debtor a discharge if the case were proceeding under chapter 7 instead of chapter 11. 11 U.S.C. §§ 727(a), 1141(d).
Postconfirmation Modification of the Plan
At any time after confirmation and before "substantial consummation" of a plan, the proponent of a plan may modify the plan if the modified plan would meet certain Bankruptcy Code requirements. 11 U.S.C. § 1127(b). This should be distinguished from preconfirmation modification of the plan. A modified postconfirmation plan does not automatically become the plan. A modified postconfirmation plan in a chapter 11 case becomes the plan only "if circumstances warrant such modification" and the court, after notice and hearing, confirms the plan as modified. If the debtor is an individual, the plan may be modified postconfirmation upon the request of the debtor, the trustee, the U.S. trustee, or the holder of an allowed unsecured claim to make adjustments to payments due under the plan. 11 U.S.C. § 1127(e).
Postconfirmation Administration
Notwithstanding the entry of the confirmation order, the court has the authority to issue any other order necessary to administer the estate. Fed. R. Bankr. P. 3020(d). This authority would include the postconfirmation determination of objections to claims or adversary proceedings, which must be resolved before a plan can be fully consummated. Sections 1106(a)(7) and 1107(a) of the Bankruptcy Code require a debtor in possession or a trustee to report on the progress made in implementing a plan after confirmation. A chapter 11 trustee or debtor in possession has a number of responsibilities to perform after confirmation, including consummating the plan, reporting on the status of consummation, and applying for a final decree.
Revocation of the Confirmation Order
Revocation of the confirmation order is an undoing or cancellation of the confirmation of a plan. A request for revocation of confirmation, if made at all, must be made by a party in interest within 180 days of confirmation. The court, after notice and hearing, may revoke a confirmation order "if and only if the [confirmation] order was procured by fraud." 11 U.S.C. § 1144.
The Final Decree
A final decree closing the case must be entered after the estate has been "fully administered." Fed. R. Bankr. P. 3022. Local bankruptcy court policies generally determine when the final decree is entered and the case closed.
Notes
Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances, and debts for certain criminal restitution orders.11 U.S.C. § 523(a). The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 11 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will be discharged unless a creditor timely files and prevails in an action to have such debts declared nondischargeable. 11 U.S.C. § 523(c); Fed. R. Bankr. P. 4007(c)
Final Report of he examiner part 510 for download
https://fdocuments.in/document/washington-mutual-wmi-attachmentsexhibits-to-the-final-report-of-the-examiner-part-510.html
danke
Planet Paprika... ne das hier meinte ich...
https://www.sec.gov/Archives/edgar/data/933136/000156459018004269/wmih-10k_20171231.htm
Securities Authorized for Issuance under Equity Compensation Plans
Information regarding securities authorized for issuance under equity compensation plans is included in Item 12 of this Annual Report on Form 10-K.
Item 12.
Was sind das genau für Shares?
5,285,868 Shares
Weil unter Item 12 geht es um die Gläubiger und das sind doch wir?
Can somebody translate that for me in normal English please?
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table contains information as of December 31, 2017, about equity securities authorized for issuance under our 2012 Plan as amended:
Plan category (1)
Number of securities to be
issued upon exercise of
outstanding options,
warrants and rights
(a)
Weighted-average exercise
price of outstanding options,
warrants and rights
(b)
Number of securities
remaining available for
future issuance under equity
compensation plans
(excluding securities reflected
in column (a))
(c)
Equity compensation plans approved by security holders
—
—
5,285,868
Equity compensation plans not approved by security holders
—
—
—
Total
—
—
5,285,868
(1)
On the Effective Date, pursuant to the Plan and related confirmation order, all equity interests in WMI, including common stock and any options, warrants, calls, subscriptions or other similar rights or other agreements, commitments or outstanding securities obligations, were cancelled and extinguished.
The 2012 Plan took effect on May 22, 2012, and will terminate on May 22, 2022. Upon termination, we will stop issuing awards under the 2012 Plan; however, the termination of the plan will not affect any outstanding awards. The adoption of the 2012 Plan did not require stockholder approval. The 2012 Plan is administered concurrently by our Compensation Committee and Board, and awards under the 2012 Plan may consist of restricted stock, restricted stock units, performance stock, performance stock units, performance cash awards, stock grants, stock units, dividend equivalents, stock options, stock appreciation rights or performance-based awards. Effective February 10, 2014, the number of shares of WMIH’s common stock available for awards pursuant to the 2012 Plan and reserved for issuance was increased from 2.0 million to 3.0 million shares. Effective February 25, 2015, we increased the number of shares authorized and available for awards under the 2012 Plan from 3.0 million to 12.0 million shares of WMIH’s common stock, subject to approval of stockholders of WMIH, which approval was subsequently received on April 28, 2015 at our annual meeting. On June 1, 2017, 333,332 restricted shares of WMIH’s common stock were issued under the 2012 Plan to outside directors. As of December 31, 2017, 5,285,868 shares of WMIH’s common stock remain available for future issuance under the 2012 Plan.
54 Billion - can somebody explain this to me?
The Equity Committee argues that under chapter 7, even though preferred shareholders are not projected by the Debtors to receive any distribution, they would still retain their claims against third parties including JPMC. Therefore, because the preferred shareholders are not getting any consideration under the Plan for their agreement to release JPMC and the others, they should be able to receive a distribution without granting a release to JPMC and the FDIC.
The Plan Supporters disagree. They contend that the releases are a condition to the GSA imposed by JPMC and the FDIC. They argue that the $7 billion in assets which are being used to provide a recovery for creditors is only available because JPMC and the FDIC have agreed to waive their claims of ownership of certain assets and to waive in excess of $54 billion in claims they hold against the estates. They argue that without the GSA, creditors (and shareholders) would get no recovery.
https://casetext.com/case/in-re-washington-mutual-5
$ 58,196,758,061 http://www.secinfo.com/dsbR9.kqd.d.htm
for escrow lovers....
1Q = 0,03349WMIH / 12 = 0,00279 Coop * 30$ = 0,0837 $ per q
1P = 19,800 WMIH / 12 = 1,65 Coop * 30$ = 49,50 $ per P
for 1Q Escrow = 1 $, Coop Shares need to be by 360 $
360 $ per Coop means 594 $ per P-Escrow
there will be no more cash etc...
but the coming interests from now on, belong to us, and that will help to raise coops share price
Good Luck....
Must read... draw your own conclusions... have a nice Weekend!!!
https://h2o.law.harvard.edu/cases/5821
Washington Mutual Preferred Funding Trust III operates as a subsidiary of Mr. Cooper Group Inc.
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=34536926
Washington Mutual Home Loans, Inc. operates as a subsidiary of Mr. Cooper Group Inc.
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=27674210
and so on...........