Mr Cooper Group Inc fka COOP

[bkshadow]

clawmann, I totally agree ("consent")...

...as that absolute priority position asserted in the reply to your post is the one that actually is not correct (but, yes it is very appealing).

...as the concept of "consent" is disregarded in such.

The FACTS are:

...per the "absolute priority rule" that is codified in 1129(b)(2)(B) of the Code states that "no holder of any claim or interest which is junior to such class" (such as equity holders) "shall receive or retain under the Plan on account of the junior claim or interest any property."

Under the absolute priority rule of 11 U.S.C. § 1129(b)(2)(B)(ii), a reorganization plan that gives a junior class of creditors an interest in the estate will not be confirmed unless each senior class receives full payment or gives its consent.

...this is also true intra-equity priority by Class, such as in our case preferred equity versus the junior common equity. Hence, when TPS was deemed to be preferreds under the conditional exchange, their vote "in the preferred class of equity" was required to be in favor of the Plan for the Preferred Class to allow the Common Equity class to receive immediate distribution (of WMIH shares).

...that is one of the points of the TPS appeal, that if the Preferred Class rejected (with their heavy weighted position) the Plan, the protection of the "absolute priority rule" would be invoked and preclude Plan Confirmation.

...and they agreed to join the settlement and agreed to "accept the plan" and not reject the plan and invoke the APR.

...and it has nothing to do with "massive amounts," (or the assertion that the Preferred Class must ultimately be fully paid prior to the junior Common Equity Class receiving anything) rather, simply allowing common equity as a Class to participate "at all" (in 25% of $190M of converted shares of WMIH at the valuation per the Confirmation Order).