This post /opinion deserves a bump IMO +3
About our Equity Interest… Just a little Research and all IMHO…
We don’t get paid for our Escrow shares… we get paid for our Equity Interest.
And, we all get paid the same way.
Whether you’re talking about note holders or creditors… or a preferred shareholder… or a common shareholder.
We all get paid by selling WMI’s assets…
Which turns the assets into cash and that cash is used to pay your claim.
And after all claims have been paid…
if any cash is left over, it belongs to the common shareholders, That’s their claim /their Equity Interest.
Every bankruptcy is designed this way…
You sell the underlying assets, then you pay their claim.
You can’t pay Billions of Dollars in claims, without selling Billions of Dollars in assets.
So, the underlying assets are sold…
Which means there’s no future payments or cash dividend coming from the assets…
Your cash comes from the proceeds from the sale of the assets.
And we have assets used in the bankruptcy, and assets at the FDIC.
The cash to pay your claim… is coming from the sale and liquidation of the WMI Estate.
Which… from the FDIC/OTS and DISCLOSURE STATEMENT, (D/S)
The WMI Estate is equal to, WMI’s WMB’s corporate structure, “$307 Billion”, plus
WMI’s Non-Banking corporate structure, “$7.3 Billion”.
which is $314.3 Billion Dollars.
The $7.3 Billion is the amount used in the bankruptcy.
Keep in mind…
The TPS/REIT’s are owed $4 Billion Dollars, which does not come out of the $7.3 Billion used in the bankruptcy.
So, the TPS/REIT’s will get paid out side of WMI’s bankruptcy…
Which would come from the $307 Billion at the FDIC.
The REIT’s $4,000,000,000 Dollar claim is Large enough, so that it’s stands out in the documents and on the FDIC-R balance sheet.
What I mean by this, is that it’s not a $ 10 Million- or $100 Million-Dollar claim… it’s $4,000,000,000 Dollars.
This part is interesting… because the REIT’s were converted to preferred shares…
The REIT’s and preferred shareholders are now both class 19…
So, when class 19 gets paid, all the preferred shareholders get paid…
And we know the REITs will get paid…
All IMHO…
The WMILT and the FDIC work in conjunction to get all claims paid. So, what doesn’t get paid in the bankruptcy… will get paid out side of the bankruptcy by the FDIC’s $307 Billion.
For example,
The TPS/REIT’s and P’s/k’s… are all class 19 preferred shareholders (equity holders).
So, they should be paid by the FDIC… and not from the bankruptcy…
Class 19 are equity holders…
So, being paid from the bankruptcy, is like suing yourself…
Being paid from the FDIC, is like receiving your allowed portion of what’s left.
On the Receivership’s Balance Sheet, it lists the claims in three categories…
General Creditor… Senior Debt Holders… and Subordinated Debt Holders. (link at Bottom)
In September of 2010. the General Creditor claim was stated at, $ 16,815 (in $000's)
Then in 2017, after the Deutsche Bank lawsuit settlement.
The General Creditor claim was stated at $ 3,025,141 (in $000's).
So,
The General Creditor category is mostly money allocated to the Deutsche Bank settlement.
Which leaves, the Senior Debt Holders category and the Subordinated Debt Holders category.
And we know the REITs are not a Senior Debt Holder…
Which means the REITs are in the Subordinated Debt Holders category.
The Subordinated Debt Holders category is stated as $ 7,723,052 (in $000's). or $7.7 Billion.
So, the REIT’s $4,000,000,000 Dollar claim,
must be allocated for, in this $7.7 Billion Dollars.
And the REITs and P’s/K’s, preferred shareholders are all Class 19…
So, Class 19…
The REIT’s $ 4,000,000,000 Dollar claim, and the
P’s and k’s, preferred shareholders $ 3,500,000,000 Dollar claim,
must be allocated for, in this $7.7 Billion Dollar amount, from the Subordinated Debt Holders category.
This would be payment for the REITs and the P’s/K’s, preferred shareholders, from outside of the WMI bankruptcy.
All so,
Because this is outside of the WMI bankruptcy… and we get paid for our Equity Interest and not our Escrow shares…
our recovery is divided between all shareholder’s “Equity Interest”, and not just those that released in the bankruptcy, in order to get their new company shares.
All IMHO…
So…
Our recovery comes from our assets at the FDIC…
WMI’s assets were “liquidated” by the FDIC-R, in order to pay all claims…
Including the preferred shareholders.
But,
To understand who is paying who…
This quote is from Investopedia.com, titled…
“What Rights Do All Common Shareholders Have?” (link at Bottom)
Quote…
If the company is liquidated, common shareholders have the right to assets and income of the company after bondholders and preferred shareholders are paid.
End quote.
So,
The WMI’s common shareholders are the debtors, it’s their Debt… they owe money to investors and creditors.
Including money owed to the PIERS…
(which assets are from Washington Mutual Capital Trust 2001… which were liquidated in order to pay the PIERS)
And money owed to the TPS/REIT’s…
(which assets are from Washington Mutual Preferred Funding LLC… which were liquidated in order to pay the TPS/REIT’s)
And the WMI’s common shareholders, owe money to the WMI Preferred Shareholders.
(Which money comes from the liquidation of WMI’s WMB’s assets.)
You can’t pay the PIERS, TPS and P’s/K’s, without liquidating Billions of Dollars in assets…
So…
Everything is with respect to, and on behalf of, the common shareholders “the Debtors”, and them trying to pay everyone’s claim…
And the FDIC, is the middle man, between WMI’s common shareholders “which are the Debtors”, and the acquiring Bank, JPMC… (everything was sold to JPMC)
So, how do we get paid? …
We go to court and sell the common shareholders assets.
To show that the assets are liquidated, and sold to JPMC…
These next excerpts are about the sale of the REIT’s assets…
And the sale of the PIERS, Washington Mutual Capital Trust 2001 assets.
But… this Post is getting a little long… so, I’m going to stop here, and continue on my next Post.
I just want to say…
Our recovery has nothing to do with Escrow shares, Escrow CUSIPS or Escrow markers, other than getting our new company shares.
Or, anything to do with WMIH/COOP.
“WMI’s” assets, are not “reorganized WMI’s” assets.
Reorganized WMI, (which is WMIH, formerly known as WMIHC) emerge from bankruptcy with only two major assets, the runoff portfolio of mortgage insurance policies (WMMRC) and about $6 Billion Dollars in NOL’s. (as it is stated in the Disclosure Statement)
The Reorganized WMI (WMIH), was only comprised of WMMRC and the NOL’s.
Everything else is WMI, and was liquidated or turned in to cash.
(see page 64 of the D/S… pdf page 245/755)
(and page 20, of the D/S… pdf page 201/755.)
Your recovery does not come from Reorganized WMI’s assets…
It comes from WMI’s assets.
One more thought,
For me, this one excerpt, is the most significant of all…
Because this statement comes after they are explaining, that the TPS’s assets were sold to JPMC, in order to pay the TPS investors.
Also, because…
The TPS/REIT’s and P’s/k’s… are all class 19. (equity holders)
This is from the D/S, page 84. or 265/755
So, after explaining, that the TPS’s assets were sold to JPMC, and knowing that the TPS will get paid from these assets…
Quote…
Since the Petition Date, WMI has not made any distributions on or in relation to the Trust
Preferred Securities or paid any dividends on account of any class of WMI’s equity securities, including preferred stock relating to the Trust Preferred Securities.
End quote.
which says…
“Since the Petition Date”, the Trust Preferred Securities… including any Class 19, equity securities… have not been paid… “YET”.
All IMHO and GLTA…
Stay safe… Stay healthy
Merry Christmas everybody
Jiminy…
Jiminy Christmas…
Just my opinion, research and curiosity…
Not intended to serve as a basis for investment in any security of any issuer. GLTA
DISCLOSURE STATEMENT
Investopedia.com, “What Rights Do All Common Shareholders Have?”
Receivership’s Balance Sheet, 2010
Receivership’s Balance Sheet, 2020
Stay healthy people-Ts
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