"The WM Capital Trusts are a 'living will' for the common shareholder."
You seem to know about a company's finances. Can you point out ANY OTHER company, anywhere that has the common share value backed by a trust?
How could ANYBODY state in Court that commons were worthless? In you scenario, such a statement would be a blatant lie, and should have been dealt with as such by the Court.
If common was backed, WHY would it EVER go below the 'GAURANTEED VALUE'?