Could WMIH be holding some escrow markers? Do you guys recall the disputed shares that WMIH was initially holding coming out of the bankruptcy and then were later distributed back to common escrow markers? What if those disputed shares had their own escrow markers associated with them but were not redistributed. So WMIH is still holding them? I think I recall about 2.5% of initial float was held in dispute.
So perhaps 2.5% of safe harbor assets returning goes to WMIH escrow markers?
Anyway, I have a suspicion that WMIH lost out on the share for value exchange bidding with the returning safe harbor assets. Perhaps JPM bought off the remaining loans. It's very suspicious that they waited this long to announce the refinancing deal. I hate to admit it but probability of WMIH merger by EOY is probably 5% now.
However, I still think escrow markers still has a good chance of seeing something by EOY. I still believe DB probate assets will somehow make their way through the Wamu 1031 Exchange and return to escrow markers. Only a few more weeks to be either really disappointed or happily vindicated.
One last thought, I doubt the hedge funds would have signed POR7 if all they are getting is WMIH with $6 billion NOLs. We all know for a fact that safe harbor assets exist. The DB lawsuit proves that. However, what nobody seems to know is when or how they will return to escrow.
I'll keep my fingers crossed for EOY escrow payout but if it doesn't happen, I'm prepared to wait 10 more years. I know my pain will be shared by all the hedge funds so at least I'm in good "effective" company. I would be worried if the pain is only shared by common folks like you and me.
