Thanks goes to hotmeat for his recent post today and I will repost as I agree 100% and will also add to his post. Do not misunderstand, I could be wrong, BUT I tend to agree with the far reaching powers, scope direction of the bankruptcy court in the case of WaMu.
I have also studied Safe Harbor/Bankruptcy Remote assets to an extent but not formally educated in this area. There are very stringent rules for any of these type of assets that would apply and the Is must be dotted and the Ts crossed.
Generally, the scope of Safe Harbor/Bankruptcy Remote ONLY extends to the point of protecting these assets from the ongoing bankruptcy case, while protecting them from Creditors as SG attorney Justin Nelson learned when Judge Walrath ordered him to cease trying to bring these assets into the ongoing WaMu bankruptcy case.
The bankruptcy case has deep, vast and controlling powers that still rule even though the assets are at bay from creditors and that is as far as Safe Harbor/Bankruptcy Remote rules extend.
Just as the medical community cannot have a half pregnant lady, the bankruptcy courts cannot have partial powers controlling former prospectuses once bankruptcy case is filed allowing for part of prospectuses to be cancelled by the court while allowing another part of the prospectus to survive whether in Safe Harbor or not.
The 75/25 Preferred AND Common Equity interests till the very end is the way I read and understand how this will play out.
***Remember***ANYTHING before Amended PO7 is TOTALLY MEANINGLESS
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The following is a post from Hotmeat and I believe, his post is spot-on correct
Much respect to your work, opinion and the HUMILITY shown while doing it...but I have to disagree somewhat.
Both Prefs and Commons past relationship to the WMI estate have been voided. The Trusts may still follow the prospectuses but they are no longer valid documents to the WMI Estate.
See highlighted quotes below.
POR7...PGS 59-60
Quote: "23.3 Cancellation of Preferred Equity Interests: Notwithstanding the provisions of Section 23.1 hereof, on the Effective Date, all non-REIT Series Preferred Equity Interests shall be deemed extinguished and the certificates and all other documents representing such Equity Interests shall be deemed cancelled and of no force and effect".
Quote: "25.2 Cancellation of Common Equity Interests: Notwithstanding the provisions of Section 25.1 hereof, on the Effective Date, all Common Equity Interests shall be deemed extinguished and the certificates and all other documents representing such Equity Interests shall be deemed cancelled and of no force and effect".
