Walter Investment Management Corp (WAC)

[pennyvestor]

Title: Walter Investment Management Corp. Reaches Agreement With Term Lenders And Senior Noteholders On Financial Restructuring

The Prepackaged Plan is expected to provide for recovery to the Company's existing common stockholders, who are expected to share 50/50 with the Company's existing Convertible Noteholders in a recovery comprising an aggregate of approximately 27% (13.5% each) of the Company's total equity issued on the Plan Effective Date, after giving effect to conversion of the Preferred Stock and subject to dilution by any shares issued after the effective date of the restructuring transactions or pursuant to a management incentive plan; however, upon consummation of the restructuring transactions, the Convertible Noteholders and the existing common stockholders would initially receive, in aggregate, 100% of the Company's new common stock and the Warrants, and the Noteholders would initially receive 100% of the Preferred Stock and the Second Lien Notes.
While there can be no assurance that the Warrants will become "in the money" and therefore exercisable, the Warrants are intended to provide the Convertible Noteholders and the Company's existing stockholders additional incremental recovery should the Warrants become exercisable, as described further in the RSAs. The recovery of the Company's existing stockholders and Convertible Noteholders is dependent upon Convertible Noteholders holding in excess of the requisite principal amount of the Convertible Notes voting to approve the Prepackaged Plan. If such approval is not obtained, existing Company stockholders and the Convertible Noteholders will not receive any recovery.
A summary of the material terms of the RSAs will be included in a Current Report on Form 8-K being filed by the Company with the Securities and Exchange Commission.

https://finance.yahoo.com/news/walter-investment-management-corp-reaches-010400005.html