ItsMyOption, this is a great post which I concur except for number two and this is what I have always tried to discuss in an adult and professional way but have been unable to accomplish.
I respect your knowledge and diligence and I would appreciate your response to my following post.
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This is your number two that I would like to discuss.
2nd. AND BY FAR THE LARGEST - Will flow directly to Escrow holder through the DTC system. A direct payment into your account. AND NO 75-25% SPLIT IT WILL FLOW AS PER APR RULES! IMO
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Remember, the last ownership change was on 3/19/2012 and I will show with court filings proof of this and that all former preferred and common prospectuses were canceled along with any associated documents. Again, explain with filings as I have below.
To me, these are investors who signed timely releases and this ownership change was governed by the (ED) Effective Date of March 19, 2012 which was signed by the court canceling all former preferred and common prospectuses along with any associated documents.
Quote: "23.3 Cancellation of Preferred Equity Interests: Notwithstanding the provisions of Section 23.1 hereof, on the Effective Date, all non-REIT Series Preferred Equity Interests shall be deemed extinguished and the certificates and all other documents representing such Equity Interests shall be deemed canceled and of no force and effect".
Quote: "25.2 Cancellation of Common Equity Interests: Notwithstanding the provisions of Section 25.1 hereof, on the Effective Date, all Common Equity Interests shall be deemed extinguished and the certificates and all other documents representing such Equity Interests shall be deemed canceled and of no force and effect".
Either the bankruptcy process controls while allowing certain assets to be legally bankruptcy remote or the process does not control. One cannot cherry-pick what applies and does not apply.
Some of us are not disputing Safe Harbor, segregated bankruptcy remote assets in trusts (this is a given), but are discussing proof of ownership and how this is distributed.
For those who signed timely releases by 3/2012, this is the last link in chain of title, so how is one's ownership measured if not for quantity of markers and type of markers?
Further, how is it that distributions would be distributed if not for the markers and the quantity and type of markers in one's account?
It would seem the powers of the bankruptcy court rule even though the assets are protected via Safe Harbor.
If these assets are totally separated from the court and the court's powers do not control ownership, then how can you use the court process of signed releases to identify ownership?
Under this pretense, it would seem if one signed releases and the assets are outside of the bankruptcy process and the powers do not govern, then investors who signed releases would NOT own these assets.
****Following explanation is from hotmeat on 75/25****
What we’re trying to show is that up to March 18, 2012 (day before the Effective Date of POR 7) old WMI stock existed under the original terms they were issued.
Preferred (Wampq, Reits + Wamkq) were owed $1000/sh and $25/sh + interest owed and once that was paid the remaining value of the WMI estate belonged solely to Commons (Wamuq) using the Absolute Priority Rule (APR).
The problem was that there was not enough assets within the bankruptcy estate to fully satisfy the Preferred debt since Safe Harbor assets could not be included in the bankruptcy estate.
The result being that Commons would have been permanently cancelled as in most bankruptcies, and the Preferred stocks would have received WMIH and any remnants of the WMI estate.
This did not occur since the EC represented Wampq, Wamkq and Wamuq, so the Reits were convinced to allow Commons to participate but with a major compromise and as such APR was consensually violated by all parties involved.
The compromise reached to allow Commons to be paid simultaneously with Preferred, was that they agreed to accept 25% of all returns to the estate, while the Preferred who were owed $7.5B + interest, would receive 75% of the estate value.
To enable this compromise to be valid, all old shares and their legal documents which specified the original rights ofcanceledand Preferred stock, had to be cancelled for this agreement to be ratified.
Once these actions were accepted and carried out on the Effective Date (March 19, 2012), NEW PREFERRED AND COMMON EQUITY INTERESTS were issued to all shareholders who signed the "Releases".
QUOTE: "So then who would own the assets?"
Those who released and received those new Preferred and Common Equity Interests. They now represent our modified interests in all that WMI formerly owned,...whether it's bankruptcy or Safe Harbor assets.
Whether you agree with my assessment or not, examine the facts concerning the Cancellation of the Old Stock and the Issuance of New Equity Interests. There is only one logical answer.
QUOTE: "Annex C - Item 1.01 Amendment of a Material Definitive Agreement.
Annex C to the Agreement was revised to clarify that holders of Preferred Equity Interests and Common Equity Interests will be issued Liquidating Trust Interests in Tranche 6 on account of those interests when Tranche 2 through Tranche 5 Liquidating Trust Interests have been satisfied in full, AND that the distribution to Tranche 6 will be shared 75% and 25% pro rata between claims on account of Preferred Equity Interests and Common Equity Interests, respectively.
