Mr Cooper Group Inc (COOP)

[LuckyPanda]

I dont think fair and reasonable should have been based on the speculatir prices of each class post bankruptcy. I think fair and reasonable should be based on the aggrieved value of each class from lre bankruptcy.

Normally creditors are not investing to get equity. Creditors only expect minimal interest return with a promise that they are protected to recover their principal first in case of shit happening.

Common shareholders are buying into a business with potential inlimited returns. However, they agree to wait last in line after creditors in case of shit happening.

I am 100% sure the judge knew what was hidden in safe harbor. Unfortunately, due to legal shielding, it could not be addressed during bankruptcy. Had it been addressed all of this 75/25 would not have happened in the first place. That being said, no logical person with the knowledge of potential $60 to $80 billion coming back, would say 75/25 split all the way is fair and reasonable. especially when the preferred were only aggrieved for about 10% of that amount. If the split is meant to be all the way through, and would need to be considered fair and reasonable, the judge would have split it 25/75 instead or even 50/50. i dont think it would have been logical for the 75/25 split to be called fair and reasonable if the judge knew about what was in safe harbor