Mr Cooper Group Inc (COOP)

[AZCowboy]

... Claw, That is Actually Not' Correct ...

I know that particular reasoning, has been bandied about by a few, however ... That is actually Not' the true and factual information regarding this issue' ... or, the actual reason why Absolute Priority was able to, not only be disregarded, but also why Absolute Priority was able to be negotiated to the simultaneous percentage distributions we all have witnessed' and read about with the Confirmed Plan' ~ the 75% / 25% equal distributions to the class 19's and the class 22's

The removal of the face cap on prefs was one of the quid pro quos that enabled commons to avoid being killed by absolute priority.

Let me explain,

Federal Bankruptcy Rule, 1129(b) ~ Does NOT under any circumstance, allow for the removal of the Absolute Priority Rule within any Plan of Reorganization with one exception ... I'll continue ...

Absolute Priority MUST remain intact as dictated within 1129(b) if all participants, The Sitting Judge, The Debtor Representation, and all subsequent class participants within the individual class designations, agree' that the Bankruptcy was filed ~ true to form ~ and that ~ the liabilities exceeded assets ~ and that in no participants view, would it be possible for returning assets and or cash as possible returns to the "Original Debtors Estate" ... be in a position to reach all remaining and participating classes ... in this example, Absolute Priority ... CAN NOT be adjusted' or disregarded'

Simply Put; ... Absolute Priority MUST be adhered to under all circumstances as mandated by Federal Rule 1129(b) ... if it is obvious to all', that there just isn't enough of anything' left within the estate to satisfy all impaired parties' ...

However, ... there is a seldom used exception to Rule 1129(b) which allows for the legal elimination of APR, ... (seldom used for obvious reasons, as most estates actually file for BK due the fact of their insolvency) ... it has a reference to what is called a "reverse cramdown" ...

The exercised exception to Federal Bankruptcy Rule 1129(b) is allowed and the elimination of Absolute Priority can be legally considered within a Plan of Reorganization, ... if it becomes obvious to all participants, ... again, the Judge, The Debtors Representation, Class Participants, etc ... ~ In our case, one must also include the Federal Judge that oversaw' the mediation within this group ... continuing,

The exception to Federal Rule 1129(b) is allowed, only' when all participants agree that, not only is it probable, but also quite possible that the Original Debtors Estate will be in a position to "satisfy" and "financially beyond satisfy" all class participants ... through to and including the equity classes'

None of our' Plan of Reorganization Participants broke any Federal Guidline' what so ever' ... They simply exersized the Rule 1129(b) exception to the rule, with their acknowledgement of the massive amounts which would be made available to the Original Debtors Estate ~ future tense' ...

That' is the actual and true reasoning of the ~ How and Why ~ the Absolute Priority Rule was able to eliminated in a legal fashion and our ending result achieved' ...

AZ