Quote: "The transferred financial assets have been isolated from the transferor-put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership. Transferred financial assets are isolated in bankruptcy or other receivership only if the available evidence provides reasonable assurance that the transferred financial assets would be beyond the reach of the powers of a bankruptcy trustee or other receiver for the transferor or any consolidated affiliate of the transferor that is not a special-purpose corporation or other entity designed to make remote the possibility that it would enter bankruptcy or other receivership (bankruptcy-remote entity) (paragraphs 9(d), 9(e), 27, 27 A, 27B, 28, and 83(c))."
Transferor:- WMI
Consolidated affiliate of the Transferor:- WMIIC
What the above demonstrates is that even non-bankruptcy remote entities such as WMI could own assets that would qualify for Safe Harbor/Legal Isolation.
So for example if WMI had transferred qualified assets to WMIIC, those assets could be afforded Safe Harbor protections even though WMIIC was not and SPE or bankruptcy remote.
My statement was not meant to be taken literally but rather to show the claims that SH assets are totally isolated from a bankruptcy and the WMILT are not 100% true.
In WMI's case I believe it's SH assets were isolated from our Creditors and FDIC seizure and sale.
Those assets are still there and will be returned to WMI's successor, the WMILT, once outstanding issues are resolved.
Any SH assets returned to the LT will be liquidated and distributed to those who released via issued LTI's.
If same assets are distributed directly from the FDIC to our Markers, the same POR ratio will apply...75%/25%.
FACTS...NOT EMPTY RHETORIC!!!
