The misunderstanding of the words "bankruptcy remote" lead to the misunderstanding that Safe Harbor assets are somehow outside the jurisdiction of the bankruptcy court which is not true.
Safe Harbor simply means protection from creditors in a bankruptcy, in this case, PIERS is the last creditor which is almost paid like HM stated. It does not mean that somehow SH assets can go its merry around and continue to operate.
There are several contradictions and logistically issues in your and CBAO9 statements:
- If SH assets are outside of the Estate then who they belong to and who will administer it once the WMI liquidation trust is disbanded?
- If WMI will be somehow revived then why do we have a WMI Liquidation Trust and not a WMB Liquidation Trust?
_ What is the percentage of the overall assets that were not sold to JPM, are Safe Harbor assets? If you say that it is the majority then what do those who signed release get? Peanut?
To me, all this "bankruptcy remote" theory comes from people who didn't sign release or didn't buy enough of the old WAMU stocks and now wish that somehow they can benefit from this bankruptcy.
This is very similar to the S4V theory proponents. They insist that they have to get free WMIH shares as a form of payment. I think it is because they cannot afford to buy WMIH shares on the open market.
Otherwise, nobody would not want all assets will be sold and the proceed returned as CASH to those who signed release.
You can make mistakes in your life but the past is the past. You cannot daydream illegal theories and scenarios to undo the past.
P.S. I think that CBAO9 conveniently "disappeared" after he discovered that his theories are wrong after the merger between NSM and WMIH happened and there are no legacy assets or WMIIC anywhere in the deal, meaning that WMI/WMIIC are sold, poof gone.
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