Mr Cooper Group Inc (COOP)

[jerrylev]

The simple answer is that all assets, SH or not, go to the debtor. This is true in any bankruptcy. The debtor includes the creditors and shareholders, and after the creditors are paid then what is left go to shareholders. In WAMU case, old preferred, TPS and old commons, were thrown into one bucket called shareholders (with the 75/25 split for the distribution that we already know),

For Safe Harbor assets, the main protection is during the seizure and bankruptcy. The FDIC cannot seize and sell it cheap to JPM, nor use it to pay creditors. But after the ED, then all assets, SH or not, would be sold anyway and the proceed will go to the trust which will distribute to those who signed release.

So SH protected the assets from the seizure and cheap sale or almost giveaway by the FDIC to JPM. Those assets will be sold at the highest price as possible by the trust and the proceed will be distributed to those who signed release.