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Actually not the greatest read:
8. Accordingly, the ANICO Plaintiffs do not object to confirmation of the Plan so long as any order entered by this Court confirming the Plan is consistent with this Court's January 7, 2011 Opinion as well as rulings from the bench relating to the ANICO Litigation such that any confirmation order provides that:
a. There is no release being provided under the Plan, the Confirmation Order, or the Global Settlement by the ANICO Plantiffs of their direct claims against any party;
b. The Court is making no determination as to whether the Debtors or the FDIC own, have any right to pursue, or have any right to seek dismissal of the claims in the ANICO Litigation;
c. Any stipulation of dismissal that the Debtors or the FDIC file in the ANICO Litigation must expressly state that they are dismissing only claims that they own;
d. Nothing in the Confirmation Order, the Plan, the Global Settlement or related documents has any bearing on the dtermination of any question of law or fact identified by the Court of Appeals for the District of Columbia that may be considered by the United States Districy Court for the District of Columbia upon remand of the ANICO Litigation.
http://wmish.com/docs/810/8411.pdf
95,000 X 2500 on the Ks
Feldman is a former EC member and was arguing for the compel motions to be approved.
A source would be helpful and appreciated.
It is in today's WSJ on the cover of the business page.
Hipster Battles Funds
http://online.wsj.com/article/SB10001424052702304778304576377880810167382.html
Hipster Battles Funds
By MATT WIRZ
Nate Thoma stood up in a Delaware bankruptcy court last December in a sharkskin suit and delivered a 24-minute argument that changed the course of one of the largest bankruptcies in U.S. history.
The 33-year-old Washington Mutual investor, with no legal experience, delivered what people in the courtroom called an unusually eloquent speech, helping persuade the judge to investigate trading by some of the nation's biggest hedge funds and to reject a plan for the bank's exit from bankruptcy.
The net result was a settlement between small investors and the hedge funds, which included Appaloosa Management and Centerbridge Partners. That deal has paved the way for the bank to exit from bankruptcy and gives the little guys a chance of recovering some of their losses.
Mr. Thoma's court appearance added new drama to an already contentious case, which began when the U.S. government seized the bank in September 2008. The court-ordered probe riled hedge-fund managers, who said they did nothing wrong, and made Mr. Thoma a folk hero among Washington Mutual's legions of small investors.
Mr. Thoma, who had traveled from Queens, N.Y., to lodge his objections in person, came across as "intense and smart," though "somewhat lacking in experience in the legal arena," says Edgar Sargent, a lawyer representing Washington Mutual's shareholder committee.
Sitting in a Greek tavern in Astoria, N.Y., on a recent afternoon, sporting a hipster-perfect scruffy beard and dressed in a plaid shirt and jeans, Mr. Thoma recalls thinking Judge Mary Walrath would cut him off after a few minutes.
"But halfway through, I noticed she was paying attention," he says. "I realized she was going to let me go on, and I went for broke."
Mr. Thoma, who gave up computer programming to become a trader in 2005, estimates he probably made 10 times his money in Washington Mutual, in part because he bought up cheap securities that will get a payout.
Mr. Thoma spent as many as 10 hours a day analyzing various pieces of the Washington Mutual case before appearing in court, and presented 33 pages of documents. In her written opinion, Judge Walrath cited Mr. Thoma's arguments six times, though she pointed out that much of his evidence was inadmissible.
"Some things were wide of the mark," concedes Mr. Thoma. "But it's my first bankruptcy."
No wrongdoing by the hedge funds was proved by the investigation ordered by Judge Walrath. Appaloosa and Centerbridge, as well as Aurelius Capital Management and Owl Creek Management, were ordered to divulge trading records and answer questions from lawyers for common shareholders.
The funds declined to comment, as did Washington Mutual's attorney.
While Mr. Thoma's impact on the case could inspire other small investors, they probably won't get as loud a voice. Judge Walrath was particularly attentive to smaller shareholders during the Washington Mutual case, in part because of the number of individuals hurt when the bank was seized, according to people involved in the case.
Soft-spoken and with about $500,000 in investments, Mr. Thoma is an unlikely agent for change in the halls of American finance and an even more unwelcome adversary for the hedge funds involved. His actions infuriated the likes of David Tepper, head of Appaloosa. They also served as a call to arms for small investors in the case, many of whom lavished him with accolades on Yahoo message boards.
When Appaloosa responded to Mr. Thoma's claims with demands for research, correspondence and trading records, shareholders, many of them from Europe, rallied to Mr. Thoma's defense, flooding the Delaware court with more than 150 objections. "Apparently, I'm big in Switzerland," he says.
Mr. Thoma, who didn't finish college, says he taught himself to trade, much like he taught himself computer programming. He is also following in the footsteps of his grandfather, who actively traded and retired early on his stock-market investments.
"When I was little, he would show me stock charts, but it didn't register," Mr. Thoma says. "Years later, it occurred to me, 'I can do this.'"
His transformation from small-time investor to activist shareholder began following the seizure of Washington Mutual. Mr. Thoma's shareholding in the bank was wiped out. He spent weeks in front of his Scottrade account, trying to figure out how to recoup money he had lost.
"I started looking at the capital structure, and I saw an opportunity to make back my investment," Mr. Thoma said. He bought trust preferred securities, a hybrid of debt and equity, which rank above common and preferred shares. That enabled him to essentially jump ahead in line for any money distributed from the bank's estate.
It also put him in the same pool as Aurelius and Owl Creek, who were snapping up the same securities.
Those securities were quoted at around one cent in November 2008, when Mr. Thoma first started buying—they are now at 16 cents—but they rarely traded and were hard to buy through his online brokerage account.
In the following months, Mr. Thoma bought in lots of 500 or 1,000 units. But he noticed other investors were occasionally able to buy them in much larger amounts, at one point as many as six million units in a day.
"I was envious," he said. "They were like whales passing in the night."
Mr. Thoma suspected the buying was being made by hedge funds, which already owned the bank's bonds. Owning large chunks of both classes of securities would help them control the bankruptcy's course, he figured. While this practice is standard in most bankruptcies, in the case of Washington Mutual, the hedge funds' strategies affected thousands of retail investors, who still owned the bank's securities.
In his December objection, Mr. Thoma said he thought it was unfair that hedge funds were able to eventually negotiate on behalf of trust preferred holders, seeing as they were also bondholders and involved in settlement talks. He questioned whether they were acting in all of the preferred holders' best interests.
Judge Walrath listened, and ordered the probe into the buying.
Mr. Thoma says he is still obsessed with the case, and his wife has banned Washington Mutual from household conversations.
But this battle is likely to be his last. He says that despite his success, his experience has left him disillusioned.
"The thrill is gone," he says. "It's such a big game, [individuals] just can't compete. I'm picking up freelance Web work again."
Someone just dropped $40K on 1000 Ps. EOM
Jay Senese's one and only post to the ghost board after stepping down from the Equity Committee:
I'd say it's safe to assume that if the depos are delayed once again, talks are progressing. If they go forward, talks have broken down (and the SNHs have jail time to worry about).
Anna,
Care to update us on the FACTS we discussed the other day? How do you see them now?
Is it a fact that if shareholders had listened to you over the past week, they wouldn't have taken part in the ridiculous gains today?
Assumptions?
NO DOCS IN SUPPORT OF V6.5 - Fact
NO OBJECTIONS OF V6.5 (from EC) - Fact
BDO (special tax consultant) - Fact
Aurelius' depo - Fact
I'll add in some other facts:
Several reschedules of hedgie depos - Fact
No advisement on how to vote on POR V6.5 from the EC - Fact
New EC members - Fact
Still no advisement after the addition of new EC members - Fact
Brokerages contacting shareholders during this solicitation process encouraging them to tender their shares - did not occur during first solicitation - Fact
Assumptions? What assumptions?
Catz... The amount of patience you have amazes me.
You can say that again. Huge volume.
No need to make any release election or file a W-9 if you sell prior to distribution because that will just be taxed like a regular stock sale. That doesn't mean you'll be taxed less by selling as opposed to granting your release, submitting your W-9, and receiving the "distribution," should it come to that.
I used to be exclusively commons and am now exclusively WAMPQ. Can't convince myself to take on more risk when I could get 70X return on WAMPQ right now before commons are in the money. Additionally, should preferred shares become "in the money," I can take profit from them to put into commons if they're lagging behind. I posted regarding this last night and it got deleted so won't be surprised if this one goes too.
If you did not return a ballot (or if you returned a ballot, but abstained from making an election regarding releases), you are not eligible to receive a distribution until you've granted your release within 1 year of the effective date. I assume that you would also submit your W-9 when you make your release election to avoid the 28% withholding.
If you do not return a ballot, your shares won't be counted either way toward a "yes" or a "no" for the plan. Your shares will remain unlocked and tradeable as you did not make an election on the releases. Should the plan be confirmed, you will have 1 year from the effective date to elect to either a) grant the releases and receive your due distribution (whatever that ends up being) or b) deny the releases, not receive your distribution, but retain the right to sue.
From the cover page in the voting packet:
Jay posted on the Ghost Board that he resigned only because the time commitment was much greater than he originally expected. He doesn't have time to run his business and be on the EC at the same time so he resigned.
That's awesome. I'm totally going to start doing that. I get way too many Discover Card applications each week as well. They sometimes send the applications in an unmarked envelope so you don't know it's trash until you open it.
Posted this on the commons board but figured I might as well post it here too:
Regarding WAMPQ being convertible to commmons:
I believe that was only true before a "default" was triggered with the filing of CH 11 bankruptcy. Please correct me if I'm wrong.
From the WAMPQ prospectus:
Regarding WAMPQ being convertible to commmons:
I believe that was only true before a "default" was triggered with the filing of CH 11 bankruptcy. Please correct me if I'm wrong.
From the WAMPQ prospectus:
Yes. The calendar is your friend.
http://www.my.calendars.net/wmi
No problem. Only speaking the truth. It's amazing what some shareholders (including you) have done so far in this case. I'm proud to associate myself with some of you. We true longs will always have your back. BTW, I'm Boulderrr over on Y and on Ghost. Keep up the good work!
Hey austin,
Can you tell me who posted that? I must have them on ignore as the original post is not showing up.
What she posted earlier today (regarding the depositions) was all over the Y board yesterday afternoon. I also recall people posting on HERE that gov had confirmed (over on Y) that they went forward with the depositions and that they were completed. The information was definitely out there. I didn't call or talk to anyone and I've known since yesterday.
Don't pay attention to their crap. You've contributed more than most on this board put together and we true longs REALLY appreciate that.
Wow, that Accum/Dist shows it all. Makes me glad I continue to add.
Gov hasn't confirmed anything.
Thanks for the recap ilenes!
Can you clarify this statement? I've read it a few times, but can't quite figure it out. :)
That's not how I read it. It seems pretty clear.
It says "NOTICE OF SERVICE OF DISCOVERY." Nowhere does it say that it is in response to the EC's discovery.
Yes, there would be a filing, just like there was when the Owl Creek deposition was delayed:
http://www.kccllc.net/documents/0812229/0812229110413000000000002.pdf
Just making sure! Good luck getting commons, though I doubt they'll be anywhere near .05.
2000 can get you 100 WAMPQ, which gets you $100K+ before commons see a penny. Are you diversified?
That comment really stood out to me during the hearing. Why was the lawyer for the Settlement Noteholders so confident that discovery would not go forward, especially with THJMW hinting that she would approve it?
REQUESTS FOR PRODUCTION OF DOCUMENTS
1. All documents or communications concerning your past and present ownership of WMI, WMB, and/or the Debtors' debt or equity, including: (i) the amount and type of such debtor equity owned; (ii) the date(s) on which such debt or equity were purchased by you; (iii) the purchase price of such debt or equity; (iv) the date(s) on which such debt or equity were sold byyou; (v) the sale price of such debt or equity; (vi) the net proceeds from sales of such debt orequity by you; (vii) your knowledge of any confidential information related to WMI at the timeyou purchased or sold such debt or equity; and (viii) any communications you had had aboutWMI, WMB, or such debt or equity at the time you purchased such debt or equity.
2. All documents concerning trade confirmations for buy and sale orders, and copiesof all SEC filings, of the Settlement Noteholders and/or members thereof, including but notlimited to Schedule 13Ds, Schedule 13Fs, and/or forms related to the any change in beneficialownership.
3. All documents concerning your tax or accounting treatment of your ownership of Debtors' debt or equity, including but not limited to any financial statement (audited, unaudited,or otherwise) concerning your ownership of Debtors' debt or equity.
4. All documents concerning any non-public information you possess or havepossessed relating to the Debtors, including but not limited to information that was non-public atthe time it was acquired.
5. All documents relating to the Reorganized Debtor, including but not limited to: allanalyses, valuations, reports and other documents and communications concerning the value of the Reorganized Debtor; all documents and communications relating to the value and possibleuses of the Net Operating Losses carried by the Reorganized Debtor; and all documents andcommunications relating to possible business plans, strategy, potential merger or acquisition, orcredit facilities for the Reorganized Debtor.
6. All minutes regarding meetings of the Settlement Noteholders group.
7. All formal and informal Board or partners meetings, notes, conversations, orcommunications about WMI, WMB, or the purchase or sale of WMB or WMI debt or equitymade or reviewed by the Settlement Noteholders and/or any member thereof.
8. All documents and communications you have had with any third party regardingWMI, WMB, and/or their debt or equity.
9. All documents and communications regarding the Global Settlement Agreement,the settlement of your claims against the Debtors, the negotiations of the Global SettlementAgreement, and/or leading to the Global Settlement Agreement.
10. All documents and communications regarding your document retention policy.
11. All documents and communications regarding your organizational structure.
12. All documents and communications you have had with any brokerage firm aboutWMI, WMB, or their debt or equity.
13. All documents and communications regarding PIERS, including its treatment asdebt or equity, its place in the waterfall structure, and the value of PIERS.
14. All documents and communications regarding any profit you have made oranticipate making as a result of your investment in WMI or WMB debt or equity.
15. All documents and communications related to WMI or WMB since September 1,2008.
16. All documents and communications related to the Worker Homeownership andBusiness Assistance Act of 2009.
17. All documents and communications related to the settlement of any claims held bydebt security holders of WMB, including but not limited to any discussions with Wells Fargo.
18. All documents concerning any internal screening procedure and any otherprocedures you employ to ensure that your trading decisions, including trading decisionsregarding any WMI or WMB debt or equity security, are not informed or affected by anyconfidential information in your possession
19. All documents responsive to any interrogatory in the. Equity Committee's First Setof Interrogatories to the Settlement Noteholders
http://www.kccllc.net/documents/0812229/0812229110118000000000004.pdf
INTERROGATORIES
1. With respect to each instance in which you traded in the Debtors debt or equity while in possession of non-public information relating to the Debtors or to settlement negotiations concerning these Chapter 11 cases, identify: (i) the date of such trade(s); (ii) the amount and type of debt or equity you traded; (iii) the consideration you gave or received for the debt or equity; (iv) the type of confidential information you possessed at the time, including but not limited to the identity of the documents containing the non-public information; (v) any efforts you made to separate those with access to the confidential information from those who were involved in the decision to trade the Debtors' debt or equity; and (vi) the date(s) and circumstance(s) of your acquisition of the non-public information.
2. Identify and describe all communications you have had with third parties (including communications between Settlement Noteholders) regarding WMI, WMB, or their debt or equity.
3. Identify and describe your knowledge and role in the negotiations leading to the Global Settlement Agreement, and your knowledge and role in any other settlement negotiations concerning these Chapter 11 cases, including but not limited to the dates you participated or learned of any negotiations, the source of any knowledge of the status of the negotiations, any contribution you made to the negotiations, and any knowledge you learned about the status of the negotiations.
4. List, by type and instance of security in WMI or WMB, the profit you have made, would have made if the Debtors' Plan have been approved by the Court as presented, or anticipate making as a result of your investment in WMI or WMB debt or equity.
5. Identify and describe any internal screening and/or any other procedures you employ to ensure that your trading decisions, including trading decisions regarding any WMI or WMB debt or equity security, are not informed or affected by any confidential information in your possession.
http://www.kccllc.net/documents/0812229/0812229110118000000000004.pdf
REQUESTS FOR ADMISSION
1. Admit that you traded in the Debtors' debt or equity while in possession of nonpublic information relating to the Debtors or non-public information relating to settlement negotiations concerning these Chapter 11 cases.
2. Admit that you were involved in settlement negotiations involving these Chapter 11 cases.
3. Admit that you were involved in negotiations leading to the Global Settlement Agreement.
4. Admit that you are prohibited by law, order, or otherwise from using any material and non-public information acquired through your role as a Settlement Noteholder to trade WMI's debt or equity.
5. Admit that you are prohibited by law, order, or otherwise from trading any WMI debt or equity from the time you first started participating in settlement negotiations concerning these Chapter 11 cases.
6. Admit that you are prohibited by law, order, or otherwise from trading any WMI debt or equity from the time you first started participating in negotiations leading to the Global Settlement Agreement.
http://www.kccllc.net/documents/0812229/0812229110118000000000004.pdf