Mr Cooper Group Inc fka COOP

[hotmeat]

Could you please explain this statement in the context of the FDIC/DB agreement?


"will not subordinate or otherwise diminish the Trustee Allowed Claim"



Relevant paragraph from the agreement


"The FDIC-Receiver will treat the Trustee Allowed Claim proportionally with all other allowed general unsecured claims and will not subordinate or otherwise diminish the Trustee Allowed Claim. Any and all distributions on account of the Trustee Allowed Claim will be made by the FDIC-Receiver to the Trustee as and when the FDIC-Receiver makes distributions to other general unsecured creditors holding allowed claims in the WMB Receivership Estate"



To subordinate or diminish the DB claim has totally separate meanings in the context of their usage. IMO by using "diminish" to refer to the DB claim, the FDIC is stating that they will not compensate DB less than the $3 billion that was agreed to.