Mr Cooper Group Inc (COOP)

[hotmeat]

CBA stated that any Trust assets held outside the bankruptcy would be allocated according to the provisions documented in each Trust's associated PSA.

The usual verbiage in these documents lay out that in the event of a liquidation of the company priority applies where higher classes are paid in full before the next class in line.

This means that all WMI Preferred shares would have to be made whole, possibly with interest, before Commons could receive a dime, but, they would receive the remaining spoils of the estate.

The problem is that the PSA's do not address our situation where bankruptcy was filed and ALL Preferred and Common shares were cancelled thus IMO nullifying the payment priority laid out in the PSA's.

The same would have applied if ALL Preferred and Common shares were cancelled outright, as per POR 6, where AAOC would have received all returns from the estate and Equity would have received nothing.