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LG, Cleveland Fed valued WMB net asset value at $85 Billion or so. That is the minimum.
No problem.You are welcome.
Tax Treatment of Liquidating Trust and Holders of Beneficial Interests
1.
Classification of the Liquidating Trust
The Liquidating Trust is intended to qualify as a “liquidating trust” for U.S. federal income tax purposes. In general, a liquidating trust is not a separate taxable entity, but rather is treated for U.S. federal income tax purposes as a “grantor trust” (i.e., a pass-through type entity). However, merely establishing a trust as a liquidating trust does not ensure that it will be treated as a grantor trust for U.S. federal income tax purposes. The IRS, in Revenue Procedure 94-45, 1994-2 C.B. 684, set forth the general criteria for obtaining an IRS ruling as to the grantor trust status of a liquidating trust under a chapter 11 plan. The Liquidating Trust has been structured with the intention of complying with such general criteria. Pursuant to the Seventh Amended Plan, and in conformity with Revenue Procedure 94-45, all parties (including, without limitation, the Debtors, the Liquidating Trustee, and the Liquidating Trust Beneficiaries) are required to treat, for U.S. federal income tax purposes, the Liquidating Trust as a grantor trust of which the Liquidating Trust Beneficiaries are the owners and grantors (this treatment differs from the treatment of the Claims Reserves, discussed below). The following discussion assumes that the Liquidating Trust will be so respected for U.S. federal income tax purposes. However, no ruling has been requested from the IRS and no opinion of counsel has been requested concerning the tax status of the Liquidating Trust as a grantor trust. Accordingly, there can be no assurance that the IRS would not take a contrary position. If the IRS were to challenge successfully the classification of the Liquidating Trust, the U.S. federal income tax consequences to the Liquidating Trust, the Liquidating Trust Beneficiaries and the Debtors could vary from those discussed herein (including the potential for an entity-level tax on income of the Liquidating Trust).
2.
General Tax Reporting by the Liquidating Trust and its Beneficiaries
For all U.S. federal income tax purposes, all parties (including, without limitation, the Debtors, the Liquidating Trustee, and the Liquidating Trust Beneficiaries) must treat the transfer of the Liquidating Trust Assets to the Liquidating Trust in accordance with the terms of the Seventh Amended Plan. Pursuant to the Seventh Amended Plan, the Liquidating Trust Assets (other than any assets allocated to the Liquidating Trust Claims Reserve, discussed below, and the Debtors’ economic interest in the litigation proceeds retained by Reorganized WMI as a result of the election by certain Claimants to receive Reorganized Common Stock) are treated, for U.S. federal income tax purposes, as having been transferred, subject to any obligations relating to those assets, directly to the holders of the respective Claims or Equity Interests in satisfaction of their Claims or cancellation of their Equity Interests (with each holder receiving an undivided interest in such assets in accord with their economic interests in such assets), followed by the transfer by the holders to the Liquidating Trust of such assets in exchange for Liquidating Trust Interests. Accordingly, all parties must treat the Liquidating Trust as a grantor trust of which the holders of the Liquidating Trust Interests are the owners and grantors, and treat the Liquidating Trust Beneficiaries as the direct owners of an undivided interest in the Liquidating Trust Assets (other than any assets allocated to the Liquidating Trust Claims Reserve), consistent with their economic interests therein, for all U.S. federal income tax purposes.
Pursuant to the Seventh Amended Plan, on or before the Effective Date, the Debtors shall provide the Liquidating Trustee with a good-faith valuation of the Tax Refunds as of the Effective Date, or shall otherwise arrange for a valuation of such assets to be provided to the Liquidating Trustee as soon as practicable after the Effective Date by such third party professionals as the Debtors deem appropriate. Other than with respect to the Tax Refunds, the Liquidating Trustee, in consultation with the Liquidating Trust Advisory Board, will in good faith value the Liquidating Trust Assets. The Liquidating Trustee shall make the respective values available from time to time, to the extent relevant, and such values shall be used consistently by all parties to the Liquidating Trust (including, without limitation, the Debtors, the
Page 238 DS same IRC
https://www.sec.gov/Archives/edgar/data/933136/000090951812000087/jg02-2712_8ke22.htm
MW might get $1 MM quarterly divi.LOL
No problem.You are welcome.
I also tried and got 404. Try this
https://s1.q4cdn.com/275823140/files/doc_downloads/irw/IRS_forms_8937/Mr.-Cooper-Group-WMI-Liquidating-Trust-Disputed-Equity-Escrow-distributions.pdf
If you again get 404, google WMI Liquidating Trust you can get the link from there.
AWSOME - Q TO AI "Pursuant to the plan,the liquidating trust assets are treated, for U.S. Federal income tax purposes, as having been transferred directly to the holders of claims or equity interests in satisfaction of their claims or cancellation of their equity interests" What does this mean?.Did equity holders issued liquidating trust interests?
Answer
The quoted statement means that for U.S. federal income tax purposes, the transfer of assets to the liquidating trust is treated as a two-step transaction:
The debtor corporation or partnership is deemed to transfer the assets directly to the creditors/claimholders and equity holders in satisfaction of their claims or cancellation of their equity interests.
The creditors/claimholders and equity holders are then deemed to transfer those assets to the liquidating trust.
This deemed two-step transaction is allowed by Revenue Procedure 94-45, which provides a method for the IRS to determine if a trust qualifies as a liquidating trust.
If the IRS makes this determination in a letter ruling, the creditors/claimholders and equity holders are treated as the grantors of the liquidating trust for tax purposes, rather than the original debtor entity.
So in essence, yes, the equity holders are issued interests in the liquidating trust in exchange for the cancellation of their equity in the debtor entity.
This allows the transfer of assets to the trust to be a non-taxable event, with future income/gains from the trust assets flowing through to the creditors/claimholders and equity holders as beneficiaries.
All former released equity holders can reach out to shareholders@mrcooper.com for clarification on issuing Liquidating Trust Interests to former shareholders.I sent an email but did not get a response yet.Its an official IRS form filed by COOP.
As per this official IRS filing former equity was issued liquidating trust interests in satisfaction of cancellation of equity. Who wants to debate?. Page 4.
https://s1.q4cdn.com/275823140/files/doc_downloads/irw/IRS_forms_8937/Mr.-Cooper-Group-WMI-Liquidating-Trust-Disputed-Equity-Escrow-distributions.pdfdebate?.
Uptick... you are dumb/moron to call everyone insane. You have an iota of idea about these cases. Escrows were deleted because DEE was closed/dissolved. W-9s can't be deleted, they required it under GSA. And ofcourse they should maintain it with their bookentry form.You have no clue, where is IRNT which you recommended to buy to this board?. Will you bear the losses borne by your recommendation?.
ESCROWS WERE TIED TO DEE, W-9s WERE/ARE RELATED TO LIQUIDATING TRUST BENEFICIARIES
Escrows were set up to distribute left over reorg WMI shares after disputed equity claims were resolved.
W-9's and releases were collected were tied to the assets allocated to equity holders whose shares were cancelled and releases were signed.
Two different things ,apples and oranges.Significant assets were transferred to WMILT as per Weil.
Assets will still be there and can be passed thru,if EC has any concerns ?
$30 B plus paid out by somebody somewhere down the line?
At minimum shareholders should take control of WMILT after claims were processed?
OK GOT IT.
Sorry, i called etrade and they told me that it was a margin fee charged to me.
SOMETHING COMING IN SOON?
$1.09 IN MY ETRADE ACCOUNT
TypeMISC
Account
XXXX - 1234
Date posted04/30/2024Amount$1.09DescriptionThru 04/30/24 for 3 days
FORM Ds in 2021 and 2023 DIFFERENCE ON BUSINESS COMBINATION
FORM D 2021
10. Business Combination Transaction
Is this offering being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer?
Yes X No
https://www.sec.gov/Archives/edgar/data/1876566/000187656621000001/xslFormDX01/primary_doc.xml
FORM D 2023
10. Business Combination Transaction
Is this offering being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer?
X Yes No
https://www.sec.gov/Archives/edgar/data/1876566/000187656623000001/xslFormDX01/primary_doc.xml
A new company should evolve because that is how no one knows where those funds and assets came from after 14 or 15 years, "UNENCUMBERED". Ofcourse the Judge and all insiders will have some clue, like Mr. Rosen said,the assets will be there and those can be passed-thru and if Equity Committed had any issues in believing they were authorized to reach 3rd party for the opinion.
Mr.Folse specifically mentioned about money coming from somebody somewhere down the line and he cautioned the court.
Mr. Nelson asked the court and approved for atleast shareholders to should take the control of WMILT after claims were processed(which was happened in Jan 2020 after class 18 was paid and admins took over WMILT).I will wait,let the process takes its own course.
7. Assets of WMI's Non-Debtor Subsidiaries, Other than WMMRC
Pursuant to applicable law, and as stated by the Bankruptcy Court at the March 21, 2011
hearing, the Bankruptcy Court's jurisdiction is limited to assets of the Debtors and not to those of any
non-Debtor subsidiary. However, because the value of the Debtors' interests in such non-Debtor
subsidiaries and non-Debtor assets, including WMMRC, ultimately accretes to the benefit of the Debtors'
chapter 11 estate, the Debtors have reflected such value in their liquidation and recovery analyses. To
provide parties in interest with additional information, set forth below is information related to WMI's
direct and indirect subsidiaries as of the Petition Date, including WMMRC, as well as historical
information regarding any transfers of assets by WMI's non-Debtor subsidiaries from and after the
Petition Date. Pursuant to Section 1. 140 of the Seventh Amended Plan, WMI's Equity Interest in all of
its subsidiaries, except for WMI Investment, WMMRC and WMB, will be transferred to the Liquidating
Trust. For the avoidance of doubt, and as set forth in more detail below, with the exception of a few de
minimis residential real estate properties held by Ahmanson Obligation (defined below) as a result of
mortgage foreclosures, neither the Debtors nor their non-Debtor subsidiaries hold any real estate.
Page 49/129
https://www.kccllc.net/documents/8817600/8817600191119000000000001.pdf
NON BANK SUBS WERE TO RECEIVE NOTE RECEIVABLE FROM JPMC AS PER DISCLOSURE STATEMENT
Of WMI’s seven remaining Non-Banking Subsidiaries, WMMRC, which is currently operating on a run-off basis, WMMRC is the only Non-Banking Subsidiary with ongoing operations. Refer to Articles IV.A.6, VII, and VIII of this Disclosure Statement for additional information regarding WMMRC. After the Effective Date, WMMRC will be Reorganized WMI’s sole operating entity. Pursuant to the September Opinion, the Bankruptcy Court determined, based upon the evidence presented at the July Confirmation Hearing, that the enterprise value of Reorganized WMI is $210 million. For each of the Non-Banking Subsidiaries other than WMMRC, the market value stated is a sum of, where applicable, (i) cash, (ii) notes receivable being paid by JPMC, carried at current market value, and (iii) in some cases, certain other de minimis assets and liabilities, less certain disbursements for expenses related to mergers with other Non-Banking Subsidiaries or dissolution, as applicable. The principal difference between the book value and the stated market value results from the fact that intercompany balances do not represent additional value to the Debtors’ estates.
THEY CONSOLIDATED ALL FIVE SUBS INTO WAMU 1031 EXCHANGE IN CA AND MOVED THOSE TO WAMU 1031 EXCHANGE IN DE.THEY PROBABLY RECEIVED ENOUGH FUNDING FROM JPM AND MOST OPERATING FOR A LONG TIME.IMO.
PAGE 59
No problem Split T, we could see the light one day with a new ticker with steady dividends IMO.
FIDUCIARY DUTY TO WORK IN THE BEST INTERESTS OF "Liquidating Trust
Beneficiaries on a WHOLE"
(b) The Litigation Subcommittee initially shall be comprised of (A) two (2) members,
to be selected by the Creditors’ Committee (together with any successors, the “CC Subcommittee Members”),
with Joel Klein and Marc. S. Kirschner to be the initial CC Subcommittee Members; (B) two (2) members, to
be selected from the EC Members (excluding the TPS Member) (together with any successors, the “EC
Subcommittee Members”), with Hon Douglas Southard and Michael Willingham to be the initial EC
Subcommittee Members; and (C) one (1) member, who shall be the TPS Member. The initial members of the
Litigation Subcommittee are set forth on Annex A hereto. Each member of the Litigation Subcommittee shall
(i) continue to act as a member of the Litigation Subcommittee until he or she is no longer a member of the
Trust Advisory Board, and (ii) have a fiduciary duty to act in the best interests of the Liquidating Trust
Beneficiaries as a whole.
WHY DID WMILT COLLECT TAX IDs FROM COMMON EQUITY?
. In order to
receive distributions under the Plan, all holders of Liquidating Trust Interests (including, without limitation,
holders of Allowed Senior Notes Claims, Allowed Senior Subordinated Notes Claims, Allowed CCB-1
Guarantees Claims, Allowed CCB-2 Guarantees Claims, Allowed General Unsecured Claims, Allowed LateFiled Claims, Allowed PIERS Claims, Allowed WMB Senior Notes Claims, Allowed Preferred Equity
Interests, Allowed Common Equity Interests, holders of Dime Warrants, and Accepting Non-Filing WMB
Senior Note Holders, who in each case, deliver a release in accordance with the provisions of Section 41.6 of
the Plan) shall be required to identify themselves to the Liquidating Trustee and provide tax information and
the specifics of their holdings, to the extent the Liquidating Trustee deems appropriate in the manner and in
accordance with the procedures from time to time established by the Liquidating Trustee for these
purposes
Proposed Trust Amendments
41. As described below, pursuant to this Application, WMILT seeks, among other
relief, authority to wind-up and dissolve the Trust following the contemplated final distribution
and, in connection therewith, (a) to reserve such funds as are necessary for such wind-up and
dissolution, and (b) consistent with the provisions of the Plan and the Confirmation Order, to
donate any remaining Liquidating Trust Assets to one or more qualified charitable organizations.
Prior to doing so, however, WMILT intends to make certain modifications to the Liquidating
Trust Agreement in accordance with its terms. Specifically, pursuant to Section 9.9 of the
Liquidating Trust Agreement, any provision of the Liquidating Trust Agreement may be
amended or waived by the Liquidating Trustee with the consent of all voting members of the
Trust Advisory Board provided that any such amendment or waiver is not inconsistent with the
purpose and intention to liquidate in an expeditious but orderly manner the Liquidating Trust
Assets in accordance with applicable Treasury Regulations.
https://www.kccllc.net/documents/8817600/8817600191119000000000001.pdf
"expeditious but orderly manner "
FORMER TRUST BENEFICIARIES
https://www.courtlistener.com/docket/4215192/12735/1/washington-mutual-inc/
Page 7
Provider further, however that,
(a)in the event that former Trust Beneficiaries receive a distribution and,
(b)Griffin is a former beneficiary of the Trust, Griffin shall be entitled to receive her allocated portion of any such distribution.
Yes ofcourse, let the administration of WMILT and receivership of WMB close, you will know. Stocks go up and down, COOP is no different, its all about interest rates.
LOL, stop crying on former equity, they will WIN eventually.
Uptick...do you have any idea why WMI asked for W-9s from released shareholders?. Escrows are gone, i second that, Do you know why WMILT mentioned Alice Griffin was a former trust beneficiary and incase of further distribution to former Trust beneficiaries, she would get her allocated part?.They mentioned this in year 2021 after they initiated winding-down.Thats reality and you have no clue. If you have coop and happy, be happy.Why do you finger with former equity holders?.
SECTION III: ·waiver of Dividends and Proceeds from Litigation
To the extent, if any, that MMMC is or was a shareholder o:f W aMu or its holding
company and by virtue thereof is or may be entitled to a dividend, payment, or other distribution
upon resolution ofthe receivership ofWaMu or proceeds in any litigation that has been or could
be brought against Federal Deposit Insurance Corporation in any capacity or against the United
States based on or arising out of, in whole or in pa.it, the closing ofWaMu, or any alleged acts or
omissions by Federal Deposit fusurance Corporation in any capacity, the Unitect·States
government, or any agency or department ofthe United States government in connection with
WaMu, its conservatorship, or receivership, MMMC hereby knowingly assigns to FDIC-R any
and all rights, titles, and interest in and to any and all such dividends, payments, or other
https://www.fdic.gov/foia/plsa/10015-wamu-masonmcduffie-mortgagecorp-2023.pdf
https://www.courtlistener.com/docket/4215192/12735/1/washington-mutual-inc/
Page 7
Provider further, however that,
(a)in the event that former Trust Beneficiaries receive a distribution and,
(b)Griffin is a fomer beneficiary of the Trust, Griffin shall be entitled to receive her allocated portion of any such distribution.
Is this offering being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer?
X Yes
https://www.sec.gov/Archives/edgar/data/1876566/000187656623000001/xslFormDX01/primary_doc.xml
PLR-117155-17 https://www.irs.gov/pub/irs-wd/201808004.pdf
Pursuant to the provisions of the Trust Agreement, Trust was created for the
purpose of liquidating the assets of Trust, with no objective to continue or engage in the
conduct of a trade or business except to the extent reasonably necessary to, and
consistent with, the liquidating purpose of Trust. The Plan provides that the beneficial
interests in Trust would be distributed to certain holders of senior notes claims,
subordinated notes claims, general unsecured claims, guarantees claims, preferred
income equity redeemable securities claims, and holders of certain debt of Y. In
addition, the Plan provides that, in the event such claims are fully paid, the interests in
Trust would be redistributed to certain holders of subordinated claims, and after such
subordinated claims are paid in full, certain holders of preferred equity interests, Dime
Warrants, and common equity interests.
LBHI is already reorganized on March 6th, 2012 and functioning as a corporation. Not public yet.
Yes Nova...i will contact both COOP and IRS too in regards to the IRS form filed by COOP about former equity receiving Liquidating Trust Interests INEXCHANGE for the ASSETS transferred to WMI Liquidating Trust.
I KNOW THEY DON'T TOUCH ANYTHING I PROVIDE WITH A LINK.
Split... just watch Paladin,IMO. COOP is KKR's and other creditors and whoever bought after reorganized. ARLTA is not a public document.JMO.WAMU RECEIVERSHIP IS OPEN.THERE IS TOO MUCH MONEY AND POSSIBILITY OF TOO MUCH CORRUPTION.
IN SATISFACTION OF CANCELLED EQUITY IN EXCHANGE FOR LIQUIDATING TRUST INTERESTS - IRS FORM 8937
PAGE 4/5
https://s1.q4cdn.com/275823140/files/doc_downloads/irw/IRS_forms_8937/Mr.-Cooper-Group-WMI-Liquidating-Trust-Disputed-Equity-Escrow-distributions.pdf
WHAT DID THEY DO WITH THE ASSETS?.WHERE ARE THOSE LIQUIDATING TRUST INTERESTS?.I WILL CONTACT COOP TO CHECK ON THIS FORM.DID THEY LIE?.I DON'T THINK SO.NEW TICKER SOON,IMO.
Q: Its showing Retained Earnings as (2000000000) on Washington Mutual, Inc and as 2000000000 on WMI Liquidating Trust/DCR on the Effective Date.What does it mean?
Here's what those figures likely represent and why they differ between Washington Mutual, Inc. and the WMI Liquidating Trust/DCR:
Washington Mutual, Inc. Retained Earnings: ( -$2,000,000,000 )
Retained Earnings: This account represents the accumulated profits (or losses) of a company over its lifetime, minus any dividends paid out.
Negative Figure: The large negative retained earnings figure on Washington Mutual, Inc.'s balance sheet indicates that the company has suffered significant accumulated losses. This is common for companies that have gone bankrupt. Losses often exceed any previous profits.
WMI Liquidating Trust/DCR Retained Earnings: $2,000,000,000
Not Traditional Retained Earnings: The retained earnings figure within the Liquidating Trust doesn't function in the same way as in a regular operating company.
Placeholder: This figure likely represents the expected amount to be available for residual distribution to claimants and shareholders after all of the company's assets are sold and higher-priority debts are paid.
Effective Date: The term "Effective Date" likely refers to the date the bankruptcy plan was confirmed and the WMI Liquidating Trust was established.
Why the Difference?
The substantial difference between these retained earnings figures illustrates the fundamental shift in purpose following bankruptcy:
Washington Mutual, Inc.: The negative retained earnings reflect the net losses the company incurred during its operation leading up to bankruptcy.
WMI Liquidating Trust/DCR: The positive figure in the Liquidating Trust essentially represents a "best-case" estimate for potential residual funds after the liquidation of assets and settlement of debts. This is not guaranteed profit but rather an estimate of potential funds available for some form of distribution.
Important Considerations:
The actual amount distributed to beneficial holders of the WMI Liquidating Trust may be significantly less than the initial retained earnings figure. This depends on how much the assets sell for and the resolution of any disputed claims.
Remember, the WMI Liquidating trust is a grantor trust, meaning any distributions will likely be considered taxable income for the recipients.
Thanks to AI for unbiased answer.
4.5 Interest on Liquidating Trust Interests. As set forth in the Plan, interest shall not accrue and be paid on the Liquidating Trust Interests themselves but only with respect to and to the extent provided in the Plan with respect to an Allowed Claim (“Interest”). Interest may, as an incremental adjustment on the maximum amount the Liquidating Trust distributes in respect of a Liquidating Trust Interest, accrue up to and including the date of final payment in full of the Allowed Claim related to the Liquidating Trust Interest as provided in the Plan.
THIS SUGGESTS THERE WERE TWO KIND OF LTIs ONE TYPE CLAIMS & ANOTHER TYPE EQUITY.
3.3 Continuance of Liquidating Trust for Winding Up. After the dissolution of the Liquidating Trust and solely for the purpose of liquidating and winding up the affairs of the Liquidating Trust, the Liquidating Trustee shall continue to act as such until its duties have been fully performed. Upon distribution of all the Liquidating Trust Assets, the Liquidating Trustee shall retain the books, records and files that shall have been delivered to or created by the Liquidating Trustee. At the Liquidating Trustee’s discretion, all of such records and documents may be destroyed at any time following the date that is six (6) years after the final distribution of the Liquidating Trust Assets, subject to any joint prosecution and common interests agreement(s) to which the Liquidating Trustee may be party.