Preliminary Statement
1. During the course of the Debtors’ chapter 11 cases, certain of WMI’s equity interest holders have waged a war of misinformation with the Court, the Debtors, the Debtors’ professionals, and, post-confirmation, with WMILT and WMILT’s professionals. Such tactics have included speculative, inaccurate or misleading financial information being posted to electronic message boards, the dissemination of erroneous information regarding the activities of the Debtors, WMILT and members of WMILT’s management and Trust Advisory Board, and personal attacks on each of the foregoing. Recently, such holders have corresponded with the National Director and the Acting Region 3 Director of the Office of the United States Trustee asserting, among other theories, many of the same issues set forth in the Griffin Objection, and WMILT has responded each time with comprehensive explanations and detailed references to documents and instruments approved by the Court.2 And, each time, the Office of the United States Trustee has accepted WMILT’s reasoned explanations and disregarded the ongoing
diatribes.
2. Likewise, and despite WMILT’s numerous responses to multiple informational requests of various equity interest holders, including postings on WMILT’s website, such equity interest holders persist and continue to assert that the Trust has significantly unaccounted for assets and it and its fiduciaries are depriving equity holders of recoveries befitting an entity that should not have been seized by the Federal Deposit Insurance Corporation (“FDIC”). Illustrative of this is the representation made in the Griffin Objection that there is an additional $10 billion3 of assets available to the Debtors’ creditors and equity interest holders. Of course, such assertion flies in the face of reality and the Trust’s prior statements reported in numerous public filings (including the notes and charts that exceed the reporting obligations required by quarterly summary reports)4 and the recent representations made in WMILT’s most recently published Form 10-K, dated March 29, 2019, for the period ended December 31, 2018 (the “2018 10K”), a copy of which is annexed hereto as Exhibit “C”, that, as of February 28, 2019, the remaining net assets of WMILT are approximately $34.9 million and, based upon the amount of Allowed Claims and Disputed Claims in Class 18 yet to be resolved, WMILT projects that there will not be additional distributions made to holders in Classes 19, 21 and 22. 2018 10K, p. 7.
3. While the consideration of the relief requested in the Griffin Objection and the attendant litigation should stop there, as the balance of the Griffin Objection is therefore irrelevant, in light of the blatant misrepresentations contained therein and the ongoing effort to malign the integrity of the members of Trust Advisory Board, the Liquidating Trustee, WMILT’s management and WMILT’s professionals, WMILT responds herein so that the Court has the benefit of accurate facts, the relevant provisions of the Plan and applicable law. In doing so, the Court will understand that the Court and WMILT have acted appropriately throughout the Debtors’ chapter 11 cases, both in a manner consistent with the terms and provisions of the Liquidating Trust Agreement, the Plan and applicable law.
AI
