Mr Cooper Group Inc (COOP)

[sometimes_right]

Wrong...Preferreds would have EVERY RIGHT to complain because they agreed to & were awarded the 75%/25% distribution ratio in favor of Preferreds uncapped, as reinforced recently by the company's own clarification statement that some wish to ignore or twist its intended meaning.

NOBODY knew how much IF any assets would be returning to Preferred shareholders when they were faced with voting whether to keep all distributions for themselves and extinguish the common shares; OR allow the common shares to remain intact and share the distribution.
At that time most folks thought there would not be enough to even pay face value for Prefereds, let alone pay a single cent to commons. Yet Preferred shareholders against most watchers' opinion, voted FAIR & REASONABLY to include common shareholders and share whatever assets that may be distributed 75%/25%.

This 75%/25% split was negotiated and agreed upon. It is "fair & reasonable" on several levels besides being a negotiated contractual term. Preferreds gave up their BK waterfall seniority in order to allow commons to remain intact and receive payment in the same Tranche as Preferreds. Furthermore, while Preferred's face values were $1,000 for "P" and $25 for "K" preferreds; common share's par value is something like $0.00001 or some such minuscule amount (check the issuing filing for exact). So IF Preferrds are 10X or even 75X face value... IF THERE IS SUCH HUGE $$$ TO BE DISTRIBUTED, commons in fact will be receiving at least 100X or 750X their par value... and quite possibly 1000X or 7500X par!!!

So yes...the negotiated and agreed upon contractual term for equity distribution is 75%/25% in favor of Preferreds, uncapped. And yes it is "fair & reasonable."

Finally for all the folks worried about "pre-seizure" WaMu shareholders, apparently they received a class action settlement. Granted it is not much, but it is $$$ they did receive.

So IF release-signing Escrow Shareholders receive anything, it is because of the risk we assumed from the fleeing "pre-seizure" shareholders when the knife was falling.

http://www.washingtonmutualsecuritieslitigationsettlement.com

https://www.fatwallet.com/forums/finance/1128822