Walter Investment Management Corp (WAC)

[Rockobongo1281]

I'll start with this: why the effective date hasn't been achieved is beyond me. I don't understand what "remaining conditions" are still not satisfied. Also, this line is of concern "The Company believes that the Prepackaged Plan remains feasible notwithstanding the variances described herein."

With that said, this is the new structure:

New Common Stock: 4,252,500 (50% to existing common stock holders and 50% to convertible note holders)
Senior note holders stock: 11,497,500
Incentive plan for mgmt: 3,193,750
New Common stock warrants A: 7,245,000
New Common stock warrants B: 5,748,750

If you currently own 50,000 shares, after the effective date, you will own 2,844 shares, 4,846 A warrants and 3,845 B warrants. (50,000 shares represents .06689% ownership of the New Common stock ((50,000 / 37,373,551 * 4,252,500 / 2) / 4,252,500). If you apply that ownership to to A and B warrants, you'll get to the numbers I'm getting to). Both A and B warrants should be traded on the stock exchange and can be bought/sold separately from common stock. I hope I'm not wrong in my calculations, but please do let me know if I am.

IF at some point, the company does well and both A and B warrants will be exercised, current common stock holders will own 27% of the company.