Mr Cooper Group Inc (COOP)

[David West]

From my previous post #520509 2018-05-29

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141152171


If person Y files a chapter 11 bankruptcy, there may be some trusts involved. Take some time and read-up on revocable and irrevocable trusts during bankruptcies. Some of these trusts (usually irrevocable trusts) are exempt from the bankruptcy proceedings and are exempt from the outcome. During the bankruptcy of person Y, the court ignores these trusts, refusing to allow them any consideration by anyone during the process. Meanwhile, the status, ownership, and management of the trusts remains the same – person Y. During the bankruptcy process person Y submits a plan of reorganization (POR) that the court approves and, except for some housekeeping entities, such as a liquidating trust that liquidates only assets allowed in the bankruptcy and distributes their liquidated value to the appropriate entity, the court declares the bankruptcy finished. Person Y now emerges as reorganized person Z. Person Y is the same person as person Z, only - reorganized. The best part is that the exempt trusts that belonged to person Y during the bankruptcy now belong to person Z. The court never allowed them in the bankruptcy, never will and therefore, the liquidating trust cannot liquidate and distribute their value.

Although the trusts involved here are different and have multiple owners or investors, this type of scenario also applies to WMI – now - WMIH. The management of the relationship between WMIH, the trusts, the accumulated value of the trusts, and any income stream from the trusts, that WMI protected from creditors and protected from the bankruptcy with securitizations and safe harbor, now belongs to the reorganized WMIH – not the former WMI, not the current WMILT, and not the former shareholder.