WMIIC was WMI's investment manager. The $1B in cash investments that WMIIC listed in court filings was everything in the accounts leading up to the bankruptcy filing in September 2008. Every month prior to bankruptcy, securitization participation income came into WMIIC coffers and was promptly distributed through the senior enterprise. ...... every month......
Every month, money flowed into WMIIC from trustees managing hundreds of securitization trusts that WMI participated in.......and that money promptly flowed out of WMIIC and into WMI as WMI saw fit.........Billions of dollars in annual income.........until: bankruptcy triggered safe harbor = flash frozen like Hans Solo, only be brought back to life in future when the time has come.
WMIIC filed for bankruptcy first, and prior to WMI it's parent's own bankruptcy filing second. The bankruptcy filing triggered safe harbor protections of "legal isolation" and off balance sheet treatment". Safe Harbor created a temporary firewall between WMIIC's ability to collect its income in the future from Sept 2008, and the trustee legally mandated to distribute that income due to WMIIC.
From the bankruptcy filing in September 2008 and going forward into the future; this safe harbor FIREWALL prohibited any more cert participation income from reaching WMIIC (and by extension WMI); and thus not showing up in any bankruptcy filings.
WMIIC had no creditors, and all cash listed in bankruptcy was a snapshot up to the moment safe harbor was triggered. Just because WMIIC filed bankruptcy with about $1B in cash, doesn't mean that all future income generated after September 2008 - present, that is held in temporary custody by the managing trustees, which is due to legacy shareholders who released, evaporates.
