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Very interesting, LG... Thanks.
Jack
LG - you wrote:
If the name is as large as being rumored or better, then look for HUGE things to happen
This is a great point, GO4. Thanks for the reminder.
Everyone must remember that the SNH were going to guve up 2.65 Billion for a reorganized company with a worth of only 160 Million.
Thanks, yezadnd. I was told today by a Wells rep that the shares would not be locked, in case a shareholder changes his mind and wants out before the shares are converted to Newco shares.
I'd rather they locked them so I know that my releases were recorded correctly.
Jack
Anyone here use Wells Fargo Brokers/WellsTrade? If so, are your shares locked, or still tradable?
I missed the voting deadline, but confirmed that my releases were received. However, my shares are free to trade online. Anyone know why?
My TDAmeritrade and Fidelity shares are locked.
I spoke with Wells and they said my election has been received and shares will be converted to Newco. I think it is odd that they haven't locked them like other brokers have.
Jack
Thanks, Catz. That was, yet again, a great read.
I'd like to thank you again for all you've done for us over the past few years. This board - and this country - is as great as it is because of the selfless efforts and the sharing spirit of people like you.
Jack
Claw: If 75/25, that would mean what conversion of P's to Newco?
Thanks.
I did not vote (missed the deadline), but I granted releases.
From TDAmeritrade's email to me:
Dear Valued Client,
According to our records, your TD Ameritrade account ending in XXXX currently holds a position in Washington Mutual. As a result, you may have received a ballot relating to the company's bankruptcy proceeding. We want to provide you with some information that we hope will be helpful.
What you need to know
As part of a bankruptcy proceeding, Washington Mutual, Inc. has developed a joint plan of reorganization. Ballots were sent out to shareholders of record because Washington Mutual is soliciting votes for acceptance of that plan.
In order for your vote to count AND for you to be eligible to receive any distribution that may result from the reorganization, TD Ameritrade must receive your completed and signed ballot by mail on or before February 6. We cannot accept faxes or emails.
If we receive your ballot between February 7 and February 23, you will be eligible for a distribution, but your vote will not be counted.
These dates are earlier than the deadlines listed on the ballot itself. Please follow the dates above and disregard the dates listed on the ballot. The extra time is necessary to allow for processing and tabulation.
Any ballots that we receive after the dates listed above, but before the expiration dates listed on the ballot, will be handled on a best-efforts basis only.
What you need to do:
Please complete and sign your ballot and mail it to:
TD Ameritrade
Attn: Corporate Actions
1005 North Ameritrade Place
Bellevue, NE 68005
Note that once you have submitted your ballot, the instructions you provided on it cannot be withdrawn.
If you have any questions, please log on to your account and click "Message Center" (under Home) to write us. A representative will respond to your query through your Message Center inbox. You can also call a TD Ameritrade Client Services representative at 800-669-3900. We're available 24 hours a day, seven days a week.
Sincerely,
John B. Bunch
President
TD Ameritrade
Interesting post from Observer on Y:
Without the commons, the 50% of NEWCO threshold can only be met by the Ps if a certain % of Ks and TPS does not release; i.e., get a share in NEWCO.
First, there is an issue as whether the SNHs can get 5% or 10% of NEWCO. To be conservative, let's say 10%.
The Ps represent 40% of the remaining 90%, or 36% of NEWCO "if all of the Ps release."
The Ks represent 7%, and the TPS represent 53%, or 60% of the remaining 90%, or 54% of NEWCO. Add that to the SNH 10%, and there is 64% non-qualifying NEWCO owners.
The math scenarios to get the Ps > 50% are not that difficult, simply look at around 25% of Ks and TPS not releasing [again assuming all Ps release].
IMO, it doesn't matter. The abandonment alternative NOL under proration providing the NOL annual limitation exception will still calculate to a gross NOL carryforward of about $12B at 2/29/12.
The NOLs are "safe" no matter "who ends up with them," because of the abandonment tax strategy early in the year. That is why I advocated the EC withdraw it's objection to the abandonment and the tying to the Plan confirmation and move to have WMB abandoned "prior to 12/31/11."
It was the ultimate "negotiating" poison pill to the SNHs ~ you will get no NOL carryforwards via abandoment [$15B*1/365] unless qualified continuing equity owns > 50% of NEWCO.
Hey, what do I know. I guess PJS is the brains for the $7.5M they have in fees to date. They being the ones that billed 21 hours on tax matters between 1/7/11 and 4/30/11.
As do I.
What a cluster.
Nice of you to say, Chiron, but I will defer to others who know far more than I.
By the way, we should be hearing about the new BOD soon. Per the EC's letter:
The Equity Committee intends to identify its selections for the board and make them publicly known before current shareholders must submit their ballots on the Seventh Amended Plan.
Agreed on all counts. I'd like to add, too, that if it weren't for Catz, Clawmann, many other valuable contributors here, many shareholders would lose a lot of money because of this uber-confusing process.
And some still will, because they insist on not listening or following directions.
GLTA
Under $10? Absolutely.
Not me.. I'm ready to buy under $10. I hope you and Chiron are right in your prediction.
What happened to your $10 prediction?
Claw: What do you make of the EC's statement that they were not aware of any merger or acquisition discussions? (Please forgive if I got the verbiage wrong... I'm doing this from memory as I don't have the EC's Q&A in front of me.)
The U's have to get something for their releases.
According to my attorney friend, judges don't typically change the terms of a settlement... but most settlements aren't put to a vote by different classes of equity like we have here.
So, as claw has said, I don't think she will touch the split - unless the pref's as a class vote "no". Even then, she may only modify it slightly, if at all.
So it will be 70/30 at worse... and possibly better for preferreds.
Jack
From Catz
Post # of 357932
Lebosco - you can't separate your voting from later giving releases.
It's a singular ballot. When you return it, you are both voting and making your release election.
Your only choice is to not vote at the voting deadline, but release before the release deadline.
And as for how to you add shares after you vote - please see the stickie, and read about "Twilight Zone" trades -- we're not going to be able to answer that one -- it's going to be broker-by-broker, and really dependent on several factors.
...Catz
Yanik: I believe what matters for conversion to new shares is the releases that you give, not your vote.
Good advise, assuming SP goes below $10 - which I don't with certainty will happen.
And if it does, I'll buy then, too.
Compared to the projected value of $17+, these prices (and those sub-$10) are a great deal.
Not true. I am a buyer. That's my bid at $13.25.
I dunno... depends on how much you have invested - and the lady.
LOL.
Don: You may have nailed exactly why the EC settled for what they did:
Oh! the IRS says I can not sell or merge with another company for NOL's to be used by the acquiring company... But guess what? I don't care about the 6B in NOL's anymore, because I just put a 26B Ordinary Loss on the books and sell my Ordinary Loss!!!! I can now merge "with any" company that wants to acquire me for my OL because the law does not single out this type of acquisition. We are not using the NOL's, we are using the loss we took for WMB Bank Stock as an instrument of value.
Jack
When should we expect to hear the new BOD announced?
The more people who refuse to follow instructions will mean more for those who do.
Thanks Catz. I understand both (1) and (2), but what I'm not certain of is whether a sub of a larger company that meets (2) wouldn't also satisfy (1).
Are you certain a sub of JPM (or another financial institution) wouldn't be eligible?
Does JPMC have a subsidiary that is the same size as WMRRC?
Don: if what you are saying is true, then the implications are potentially huge for equity.
Thanks for posting this - I hope others can contribute to the conversation.
Jack
I think we all agree the judge wants this wrapped up and out of her court. She has now before her a settlement and a plan that the mediation parties agree to.
Sure, she might change the P's percentage... but she could just as easily opt not to, claiming that said split is the proposal of the EC, and she is going to leave it at that.
At this point, nothing would surprise me.
Jack
You are brave, Yanik. I'm not buying anything - just holding what I've got.
Best of luck,
Jack
My questions stem my talk with my attorney friend. As I have mentioned previously, he is not a bankruptcy attorney. However, he has not seen a judge insert himself/herself into a settlement between parites.
Not only does he currently think that U's will not be cancelled out, he thinks there's little chance that JMW will change the 70/30 split.
But, to your point, this case is unusual and leaves the door open for JMW to do that. Whether she will or not remains to be seen.
Thanks for sharing your thoughts on the matter.
Jack
I understand that the plans provide for the judge to make her own determination as to the split, but are you aware of it happening in any other cases?
The reason I ask is JMW may (again, may) decide that what is proposed is the result of settlement negotiations, and since the parties are in agreement, and that the EC represents the interests of Equity, that she won't mess with the percentage.
It is my understanding that judges are reluctant to mess with what is agreed to in a settlement, and rarely do. One could argue that our infamous GSA is one such example - unfair to us, but that's what the parties agreed to, so the judge didn't mess with it.
And before APR is invoked, remember that APR can be "settled away", can it not?
Just something to think about...
Jack
Question for the board: Is anyone aware of another Chapter 11 in which a judge changed the terms of a settlement, subsequent to a vote of a preferred class of equity?
I'd like to know if there's a precedent for what we've been discussing, which is that JMW will change the 70/30 split if P's vote "NO".
Thanks
Jack
Good post Don.
For some reason, this debtor is going to work with the new company in suing the 3rd parties.
Question for the board: Is anyone aware of another Chapter 11 in which a judge changed the terms of a settlement, subsequent to a vote of a preferred class of equity?
I'd like to know if there's a precedent for what we've been discussing, which is that JMW will change the 70/30 split if P's vote "NO".
Thanks
Jack
GO4: Would you mind sharing your math with an example? I'm curious as to the numbers that you used as assumptions in your calculations.
Thanks.
Jack
Thanks for the clarification.
By "push it through", I was referring to the 70/30 percentage split, not the plan.
Thanks again.
Jack