Mr Cooper Group Inc (COOP)

[LuckyPanda]

This is my theory on 75/25 split.

I think prior to POR7, everyone in the room knew about the very large assets in safe harbor including the judge, but for technical reasons, no one could include it in the payout matrix - due to the legal shielding of safe harbor.

So both commons and preferreds had good points. Preferreds claim that they should get all of APR. Commons claim that had it not been the unfair seizing of the bank by FDIC (government), we would have access to safe harbot assets, and preferred wcan be easily paid off.

So it was a conundrum for the judge. Technically, preferreds should get the entire of WMIH but it would not be fair in the spirit of the law... since everyone is aware of the very large assets shielded by safe harbor. Judge wanted to make a "fair" outcome. So 75/25 on "claims" on account.

If no assets ever came back from safe harbor (very unlikely), preferreds would get most of WMIH. But if alot of assets do come back from safe assets, preferreds would be easily paid face plus interest with 75/25 split and everything else going to commons there after. I think it was a brilliant move by the judge to bypass APR in a fair manner while not technically acknowledging the massive assets behind safe harbor.

IMO, 75/25 split until face plus interest for preferreds and everything going to commons there after.

This is also supported by my suspicion in keeping separate escrow markers for both commons and preferreds. If it is trult 75/25 split to the end, they would have issued a single escrow marker and split it 75/25 like they did with the initial issue of WMIH stock.