Washington Mutual WAHUQ Trust Prf (fka WAHUQ)

[Rumble]

WMIH has the NOLs, and hedgefunds cash and line of credit facility.

WMIH also has WMMRC which is in run-off mode; but it is still an active business. In order for the LT to capture the value of WMMRC and not have to administrate this business, WMIH kept WMMRC as an operating sub (in run-off mode). The notes were a way to "Strip" the value from WMIH and provide the value to the LT and ultimately in this case to the WAHUQ shareholders.

The liquidating trust collected the interest on the notes and held them until such time as they were allowed under the terms of the POR to distribute the notes. They tried to sell the notes (which I was personally opposed to) in order to generate cash and make their lives "easier" but the additional interest and value that had accrued to the notes would have been lost to those of us holding wahuq claims.

Once the LT distributed the notes to WAHUQ claimants the LTI was reduced by the face amount of the notes. This left the "65%" of the WAHUQ claim remaining as an amount owed by the LT. Thus any additional amounts collected by the trust will be distributed to WAHUQ claimants until the claim is paid in full.

Meanwhile, WMMRC has disposed of some assets and extinguished the related insurance claims in their run-off business. That was what allowed WMMRC to issue a dividend to WMIH to retire a good portion of the notes now held by WAHUQ claimants. These notes are assets and a liability of WMIH (although non-recources to the extent that WMMRC is unable to repay them) but a liability of WMIH none-the-less. So all note proceeds come to note holders directly from WMIH.

All WMIH profits will accrue to the benefit of the WMIH shareholders. Additional cash dividends from WMMRC to WMIH will be used to retire the remaining notes held by WAHUQ claimants.