Mr Cooper Group Inc (COOP)

[deekshant]

WWhatthe: For Reveiw

Thanks wwhatthe . This is very very good. I agree with you for the most part. Sharing my observation as a layman for review

The WAMU Bankruptcy is ruled by its Purchase & Assumption Agreement and GSA, and the Liquidating Trust was created around this Agreement.

I beg to differ. BK was caused by seizure. Yes, BK exit is ruled by GSA, but, non releases within GSA have nothing to do with P&A. Liquidating Trust left its prayer for relief against FDIC R/C completely intact within GSA that has nothing to do with BK court. It can only be addressed under FIRREA. There is a minute difference but a significant one from recovery perspective.

Q1 - Will 2.5% of the WMI LIQUIDATING TRUST cash distribution go to WMIH?…

e) The equity interests in (i) WMI Investment (all the assets of which shall be Contributed to the Liquidating Trust, including any Intercompany Claims),

So all of WMI and WMIIC assets are held by the Liquidating Trust and are now the Liquidating Trust Assets…except The equity interests in WMI Investment Corp (WMIIC), which is now a empty shell, with no Assets no liabilities or Debt. And we know now, it will be returned to the reorganized debtor (WMIH) and will be dissolved.

What has not been touched and which is of significance is the equity interest as sole shareholder of WMB. We know that it is zero for now but when $1 reaches escrows, then, it is all about maximizing recovery for the trust including equity. Any capital contribution made in exchange for equity in WMB (100% owned) which imo amounts to 6+billion is up for a claim.

I think the debtor comprises of two parts. One represented as a creditor (Asset value) and the other represented as sole shareholder (equity value). Whereas one resides with escrows the other resides with Reorg WMIH. In order to maximize recovery for the estate all assets including equity claim were transferred over to the Liquidating Trust. But, it was carved out such where any recovery from asset value goes over to the escrows and the equity value goes over to the reorganized trust.

“This bring up the question, Is WMIH or WMIIC a Liquidating Trust Beneficiary.”.

I think WMIH is a Liquidating Trust Beneficiary on account of the fact that all equity was transferred over to the Liquidating Trust to oversee recovery through litigation/settlement….

1) What is the WMI Liquidating Trust?
WMI Liquidating Trust (the “Liquidating Trust”) serves as a mechanism for liquidating, Converting to cash and distributing the Liquidating Trust Assets to the holders of beneficial interests in the Liquidating Trust (the “Liquidating
Trust Beneficiaries”).

I think Liquidating Trust also undertakes any legal action on behalf of the estate on account of maximizing net recoveries

1.6 No Reversion to Debtors. In no event shall any part of the Liquidating Trust Assets revert to or be distributed to any Debtor or Reorganized Debtor.

In no event shall any part of the liquidating trust assets revert to or be distributed to any debtor or reorganized debtor. True, but it doesn’t say if equity claim can be distributed to reorganized debtor. Why, because we cannot yet show if it has a value and bankruptcy/seizure was based on insolvency.

We do know WMIH will and has received Litigation Proceeds, like in the
D&O Litigation.

In the next excerpt… it says Reorganized WMI will retain an economic interest in, the Litigation Proceeds, only if the Litigation Proceeds are not part of the Liquidating Trust Assets…

…As a result, each creditor making such an election conveyed, and Reorganized WMI retained an economic interest in, the Litigation Proceeds (and such proceeds do not constitute part of the Liquidating Trust Assets)…

This demonstrates that WMIH will receive Litigation Proceeds only from Litigation’s that do not involve the Liquidating Trust Assets…

Why is that and what does it amount to. What have we seen that supports it (D&O litigation) and how does it benefit WMIH and what is it that it is referring to since WMIIC has no assets or liabilities…

Even when I see an equity claim on behalf of WMB to the benefit of WMIH, I am not able to comprehend what claim will fall under the 2.5% recovery through litigation proceeds if it is not against trust assets