Impac Mortgage Holdings Inc (IMPM)

[Joe Stocks]

5. Concerning lawsuit, the court order is pretty clear on claim 1, that in order to make the proxy stand, 2/3 of each class much vote for change. Thus the judgement is for both classes of preferreds, if IMPHP wins, IMPHO also wins. IMPHP getting paid while IMPHO getting nothing is absolutely nonsense.

IMPHP and IMPHO are two separate securities. Shareholders for both voted on the tender offer. IMPHO shareholders tendered the required numbers of shares needed to change the terms of their security.

IMPHP shareholders did not.

The company argues that it should be the total vote of the two combined which should rule. The lawsuit says the vote should be separate for each security and the IMPHP holders should not be held to terms approved by the IMPHO holders.

You say they should be treated the same. I disagree. I think the IMPHP shareholders have a very good argument and may win their lawsuit. From my understanding from what Dave Sims has written, the IMPHO holders are not a party to the lawsuit. I think the court ruled gaisnt them if they were at one point. The main sticking point is the vote. Should the combined vote stand, and both IMPHO and IMPHP lose. Or, are the securities treated as separate with each shareholder of each entitled to their own vote. If so, IMPHP holders win. IMPHO loses. (Not really loses as they aren't a party.) If IMPHP wins all the original terms of the securities should be reinstated. IMPHO shareholders status doesn't change.