I've been pondering the issue of whether the tendered LTWs were transferred to WMHI, and are still extent, or were they cancelled.
At the end of POS7, the LTW holders were given an option to exchange their LTWs for shares of newco renamed "WMHI". The exchange involved an exculpation clause and an agreement for finality of exchange.The exchange rate was 1 WMHI for 8.4 LTWs.
At the issue date WMHI was worth $.25, which was equivalent of $.03 for each LTW. WMHI today is worth $2.76, which means that each LTW tendered is worth eleven times the 2012 valuation. A most excellent return by any measure. It is equivalent to $.33 on the original LTW.
However, nowhere in the exchange agreement was a stipulation that WMHI would retain these LTW in its treasury for redemption upon a positive Court ruling in US Claim Court (Judge Block). Nor, have I seen this item listed in WMHI's Balance Sheet as Receivables. This may cloud any claim that WMHI may have on the pending proceeds from the FDIC. Neither, can JPM claim the proceeds as their due is fixed at 15% of the Award.
Since the tendered LTW were extinguished, it appears that those still holding them are the only true claimants to the net proceeds.
I am sure that another lawsuit is about to commence.
Disclaimer: This speculation is my own opinion and not legal advice.
AI
