Mr Cooper Group Inc (COOP)

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Quote from: Porkchopranch on Yesterday at 06:16:55 PM
The TPS got that extra money from JPM to "go along w/the plan" as far as I remember.
It was a payoff by JPM. Plus I think we had to indemnify them? Not sure, long time ago.
But other than that payment, I think all pref is equal now.

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Porkchopranch,

TPS were given $18 million by JPMC.

Read the past post when I replied to flyboy:

https://www.boardpost.net/forum/index.php?topic=13141.msg229244#msg229244

“ Quote from: Flyboy on September 22, 2018, 11:44:39 AM
Am I reading this right? It appears that the TPS group gave up a claim of roughly $1.65B in exchange for an allowed claim of only $0.618B plus and additional 5% paid from the LT to holders of preferred share escrows. If correct, they gave up over a billion dollars for an additional 5% of anticipated LT proceeds. Is this right?


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Flyboy,

http://www.kccllc.net/wamu/document/0812229120227000000000002

Essentially yes, but they gave up $1,654,965,000 value (PDF page 8 of 24) in exchange for :

1) Class 12 $618,356.25 (PDF page 11 of 24),

2) JPMC also paying in cash $18 million (PDF page 11-12 of 24),

3) attorney fees of $15 million (PDF page 12 of 24),

4) one member on the TAB (#8 on PDF page 12 of 24),

5) one member on the Litigation Subcommittee (#9 on PDF page 12 of 24),

6) and of course the increased 5% increase from 70/30 split to 75/25 split (#3 on PDF page 21 of 24).


IMO...the 5% increase regarding preferred/common WMI Escrow Marker split is very valuable!”

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IMO...my conclusions as of February 28, 2020 @ 0708 CST:

1) TPS did give up their litigation in lieu of $18 million, attorney fees and most importantly an extra 5% in Class 19 preferred claims instead of the initial 70%.

2) So the prevailing question is what is 5% difference in Class 19 claims worth to TPS investors?

My answer: assume $101.9 billion (WMI retained interests in bankruptcy remote, legally isolated MBS Trusts from FDIC) is the potential recoveries

$101.9 billion x 5% = $5.095 billion more recoveries to Class 19 preferreds

TPS owns 52.6% of Class 19 claims :

$5.095 billion x 52.6% = $2.67997 billion

Thus TPS original claim = $1,654,965,000

$2.67997 billion / $1,654,965,000 = 1.61935

Therefore TPS investors would recover 61% more from just the extra 5% in Class 19 claims alone...IMO...the extra 5% is very valuable!!

IMO...that is why the TPS investors fought hard for the extra 5%.

Total for TPS would be:

$101.9 billion x 75% (Class 19) = $76,425,000,000

$76,425,000,000 x 52.6% = $40,199,550,000 total recoveries to TPS investors in exchange for an initial $1,654,965,000 claim