The RSA presently contemplates the following treatment for certain key classes of creditors under the Reorganization Transaction:
• DIP Warehouse Facility Claims. On the Effective Date, the holders of DIP Warehouse Facility Claims will be paid in full in cash;
• Term Loan Claims. On the Effective Date, the holders of Term Loan Claims will receive their pro rata share of new term loans under an
amended and restated credit facility agreement in the aggregate principal amount of $400 million, and 100% of the Company’s new
common stock, which will be privately held;
• Second Lien Notes Claims. On the Effective Date, the holders of the Company’s 9.00% Second Lien Senior Subordinated PIK Toggle Notes
due 2024 (“Senior Notes”) will not receive any distribution;
• Go-Forward Trade Claims. On the Effective Date, holders of all Go-Forward Trade Claims (i.e., trade creditors identified by the Company
(with the consent of the Requisite Term Lenders (as defined in the RSA)) as being integral to and necessary for the ongoing operations of
New Ditech) will receive a distribution in cash in an amount equaling a certain percentage of their claim, subject to an aggregate cap; and
• Existing Equity Interests. On the Effective Date, holders of the Company’s existing equity will have their claims extinguished.
