...and is not based on the payout matrix "at all."
hotmeat Friday, 09/11/15 02:44:53 AM Re: Donotunderstand post# 434878 Post # 434916 of 434917
When the payout matrix was formulated it was expressly stated that WMIH is to receive 2.5% of any returns to the estate and this will be out of the 25% that former commons (Wamuq's) will receive, reducing them to a 22.5% return. Go back and check it for yourself.
...it is based upon 50% of the AAOC's claims.
...as a proportion of their interest in "certain litigation proceeds" as defined in the 7th Amended Plan and Disclosure Statement.
..."certain litigation proceeds" have been concluded by this settlement per the WMIH and WMILT SEC reports.
...as per the settlement with the AAOC in the mediation re: equity's insider trading argument.
...as part of the 10M shares obligation.
...but based on all AAOC claims.
...this is supported by the allocation of the $37M Directors and Officers (D&O) settlement approved by the bankruptcy court.
...calculate the WMIH amount received of the $37M.
...what is the %?
On or about October 14, 2014, the Trust filed a lawsuit in King County Superior Court in the State of Washington against 16 former directors and officers of WMI (the “D&O Litigation”). The Trust’s complaint alleges, among other things, that the defendants named therein breached their fiduciary duties to WMI and committed corporate waste and fraud by squandering WMI’s financial resources.
In connection with the D&O Litigation, on December 1, 2014, the Trust filed its Motion for an Order, Pursuant to Sections 105(a) and 362 of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure, (A) Approving Settlement Agreement Between WMI Liquidating Trust, Certain Directors and Officer and Insurers and (B) Authorizing and Directing the Consummation Thereof (as amended, modified or supplemented prior to the date hereof, the “D&O Settlement Motion”). Among other things, the D&O Settlement Motion sought approval of a settlement among the Trust, certain former directors and officers of WMI and certain insurance carriers that underwrote director and officer liability insurance policies for the benefit of WMI and its affiliates (including such former directors and officers), pursuant to which, among other things, the insurance carriers would pay the Trust $37.0 million. In its Quarterly Summary Report for the period ended December 31, 2014, a copy of which was filed by the Trust under Form 8-K on February 2, 2015, the Trust estimated that of the approximately $37.0 million in Litigation Proceeds, WMIH would be entitled to receive approximately $9.0 million in Litigation Proceeds received by the Trust. At a hearing held on December 23, 2014, the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) granted the Trust’s D&O Settlement Motion. On January 5, 2015, certain non-settling officers appealed the Bankruptcy Court’s order granting the D&O Settlement Motion. In connection with the settlement of the D&O Litigation, the Trust entered into a Reserve Settlement Agreement (“RSA”) with the appellants and certain insurance carriers to settle the D&O Litigation and that pursuant to the terms of the RSA, the parties agreed, among other things, that $3.0 million of the $37.0 million that had been required to be paid to the Trust pursuant to the settlement, would be placed into a segregated reserve account to be administered by a third party. Under the RSA funds are released from the reserve to the Trust if and when certain designated conditions are satisfied. If and when these funds are released to the Trust, and to the extent the Company is entitled to receive such funds in accordance with the Plan, it is anticipated that the Trust will make payments to the Company in an amount equal to the Company’s share of Litigation Proceeds as provided under the Plan. Due to the contingent nature of the reserve, however, there can be no assurances that WMIH will receive any future amounts on account of funds deposited in such settlement reserve. During June of 2015, WMIH received approximately $8.3 million in Litigation Proceeds, representing WMIH’s portion of the $34.0 million of net Litigation Proceeds which were received by the Trust.
...no, Susman did not 'file it.
...no, the $500M D&O claim is "not still out there."
WaMu Trust Cuts $37M Deal With Execs Over Bank's Collapse By Stewart Bishop
Law360, New York (December 23, 2014, 6:48 PM ET) -- A Delaware bankruptcy judge on Tuesday signed off on a $37 million settlement of a suit brought by Washington Mutual Inc.'s liquidating trust that accused the holding company’s former officers and directors of recklessness for approving a $500 million transfer to Washington Mutual Bank shortly before it collapsed.
U.S. Bankruptcy Judge Mary F. Walrath approved the deal, which ends litigation in Washington state as well as a dispute in Bermuda with insurers who balked at picking up the defense tab for the former leadership. The settlement also hands former WMI CEO Kerry K. Killinger $7 million and a limited recovery for other former leaders over employment related claims.
The directors and officers of WMI were accused of neglecting their fiduciary duty by transferring $500 million to the WMB unit just before that bank went into receivership.
The Washington suit describes alleged management failures that it says contributed to the sorry financial state of the company. The liquidating trustee claimed the directors and officers should have known that the $500 million infusion into WMB would not solve the liquidity problems the bank was experiencing in September 2008.
In a statement, WMI Liquidating Trustee William C. Kosturos said, “We are pleased that the court approved this settlement agreement, which will help preserve the trust’s resources and enable future distributions.”
In addition to Killinger, the trustee had targeted former chief financial officer Thomas W. Casey, former chief operating officer Stephen J. Rotella, former treasurer Robert J. Williams Jr., later former CEO Alan H. Fishman and former directors Stephen E. Frank, Charles M. Lillis, James H. Stever, Margaret Osmer Mcquade, Michael K. Murphy, Orin C. Smith, Phillip D. Matthews, Regina T. Montoya, Stephen I. Chazen, Thomas C. Leppert and William G. Reed Jr.
Defense attorneys could not be immediately reached for comment on Tuesday.
The deal should free up $18 million for creditors that the bankruptcy court had ordered to be set aside to indemnify the former brass.
Washington Mutual Bank collapsed in 2008, in one of the biggest bank failures in U.S. history, after $16 billion in deposits were withdrawn in 10 days. The bank was placed into receivership with the Federal Deposit Insurance Corp., which immediately sold its assets to JPMorgan Chase Bank NA for $1.9 billion, while holding company WMI sought refuge in bankruptcy.
The holding company emerged in March 2012, reorganized as a reinsurance company under control of former shareholders after three and a half years under court protection, and set up the liquidating trust to pay back creditors.
The trustee is represented by Mark D. Collins, Paul N. Heath and Amanda R. Steele of Richards Layton & Finger PA and Brian S. Rosen of Weil Gotshal & Manges LLP.
Casey, Rotella and Williams are represented by Stephen Spence and Aaron C. Baker of Phillips Goldman & Spence PA. Counsel information for the other defendants was not immediately available on Tuesday.
The Washington case is WMI Liquidating Trust v. Casey, case number 14-2-28048-3SEA, in the King County Superior Court of the State of Washington, The bankruptcy case is In Re Washington Mutual Inc. et al., case number 1:08-bk-12229, in the U.S. Bankruptcy Court for the District of Delaware.
...and no, it has nothing to do with PIERS retail investors.
...there wasn't a mass PIERS dump near the end as evidenced by the trading transaction reports.
...the PIERS were 70% AAOC (SNH's).
...that were after the reorganized debtor.
...solely for the potential $13B unrestricted NOL, based upon basis determination on abandonment of WMB by WMI, and prorated by the abandonment date.
