Mr Cooper Group Inc (COOP)

[LuckyPanda]

This was the slight of hand trick. If the judge could have addressed the bankruptcy remote assets, she could have done exactly like you suggested - keep APR in force and pay everyone until commons is reached.

However, she couldnt legally address the bankruptcy remote assets but she knew that there were more than enough to reach commons.

She needed some sort of way to keep commons around past POR7. So she approved the 75/25 plan to split whatever is left in the LT.

Heres the slight of hand. She assigned two separate escrow classes, 19 and 22, to keep track of whose who. This way, after the LT assets are gone and bankruptcy remote assets return, they will return with APR in force.

If she truly wanted to split everything 75/25, including bankruptcy remote assets, then she would have assigned one escrow class for both commons and preferred, and split the number of markers of that one class 75/25 between commons and preferred. That way, there is no distinguishing between commons and preferred post POR7 - you will get your 75/25 based on how many markers of the one common escrow class you owned.