This is the scenario that I envision happening in 2018 as WMIH moves forward with multiple mergers
Fair & Reasonable-I Feel Scenario Most Likely in 2018
• The following numbers are from SG’s Edgar Sargent-After signed releases 3/2012
142,500,000 (75% of 190,000,000) are distributed to holders of preferred securities as well as claims subordinated to the level of preferred. Total disputed claims at the preferred level are $106,514,585.09. For those claims, 2,109,051 shares are reserved. The remaining 140,390,949 are distributed evenly by liquidation preference across the $7.5 billion of preferred shares. However, while the TPS are denominated in 1,000s, the Series K has a face amount per share of $25.
For the TPS, 3,729,658.260 shares provided releases and will receive 73,849,406 shares or 19.80058 new shares per old share. This share count is after giving effect to the mandatory exchange.
For Series R, 2,906,421 shares provided releases and will receive 57,548,829 or 19.8005825 new shares per old share.
For Series K, 18,166,565 shares provided releases and will receive 8,992,714 shares or 0.4950146 new shares per old share.
For the common shareholders, they are receiving 47,500,000 shares of which 4,165,750 shares go to the Dime Warrant holders, 2,631,933 shares are reserved for disputed equity claims, 693,806 shares will be distributed to Principal Financial on account of their claims and existing common will get 40,008,511 shares. For each share of existing common granting releases in the total amount of 1,194,340,178 shares, they will receive 0.03349842 shares.
• Before WMIH completes the NSM merger there is around 200 million outstanding shares
• Of the 200 million outstanding shares, this included both former (both-Ps&Ks) WaMu preferred and common
• Of the 200M outstanding, 150 million shares are from former WaMu Preferred
• That leaves 50 million shares that are common shares at the 75/25 formula created at exchange
• I fully expect the 150M outstanding to be exchanged into Preferred
• The Preferred in my view will carry a 10% annual dividend with option to convert at 100 common for one preferred based on reaching a WMIH $10.00 stock price.
The old Preferred had $1,000.00 face value converted to 47.0535 common shares based on a $21.25 of common stock.
Imagine, if they issue new Preferred at FV of $1000.00 and price of NewCo/WMIH is $10.00, that would mean New Preferred would convert to common at 100 common to one Preferred.
With the above scenario, I believe commons could get a forward 4 or 5 (maybe higher) common exchange for 1 as well for F&R
• I also expect the WMIH common at some point to pay a 2 to 3% annual dividend
• For the cash pile, I feel that has been accruing since 10/2008 will return at 75/25 formula
• The 75/25 is the very last connection in chain of title
• My view understanding/reading documents is 75/25 math formula will carry to the very end
• Yes, all former Preferred/Common Equity plus documents were cancelled by the court 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".
*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.
Have I told you lately how much more, more and more I love my Escrow ShareMarkers that continues to grow immensely every single day forward?
AI
