Delaware BK System-Large Cases-Kmart Now WaMu
Hotchberg's statement regarding WMB's loan file.
"39 Equity undertook a preliminary solvency analysis based on the limited information made available by the Debtors. Equity noted that a final analysis of solvency would require a detailed review of WMB’s loan portfolio, which is not available to Equity and was also not reviewed by the Debtors. The Examiner in this Report has an analysis of solvency, but he also did not conduct a review of the loan portfolio."
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*The Holy Grail*RETAINED ASSETS*YOUR HONOR*They Will Still Be There
The legal group Akin and Gump are discussing the scope of what the Examiner can examine and what he cannot examine.
We also have in there the part (b) of what is to be retained, and that is because in
negotiations that we had with all of the settling parties, with the equity committee
last week, with the FDIC, we did talk a great deal about the concept of the retained
assets. Now, it's my position, Your Honor, that the examiner doesn't need to know
much with the retained assets other than say the assets are retained and therefore
the liquidating trust can go ahead and pursue them. They will still be there; they
can be carried through. But I understand that the equity committee is very
interested in having a neutral third party do an investigation of those retained
assets.
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WaMu Bankruptcy Case VERY Similar in Principle to Kmart
Many of us have understood one could not have large style money coming back during an active bankruptcy case as this would be totally illegal and cause gargantuan lawsuits by the truckloads.
However, it is how this case is played and closed such as during the final POR 7 signed on 2/23/2012 that issued Escrow Markers to those that signed timely releases by the deadline as well they were issued NewCo/WMIH stock that make the difference. Thanks to AZCowboy for pointing out the two Dual track cases.
We will see the bankruptcy closed out with minimal monies IF ANY monies coming back and it could be that Piers final payment MAY NOT be made and leave Piers impaired. So therefore, no LTIs issued however, those who have the Escrow Markers will see the LARGE STYLE monies once the bankruptcy case is closed in my view.
This is similar to how Kmart worked even though all of their share-owners were zeroed out. Kmart did not show their real estate value until the NewCo issued shares and moved forward, their case closed and then the value of the former real estate was valued in each following quarters moving forward. This propelled NewCo Kmart stock up from $25.00 to $171.00 a share over the ensuing 18-24 months.
In principle, the same will happen here when the Safe-Harbor assets are reunited with Escrow Shareholders. This is my view of how this proceeds.
The aforementioned is why I love my Escrow Shares so much that continues to grow immensely every single day forward!
