Mr Cooper Group Inc (COOP)

[David West]

A post from the past (Tuesday, 05/29/18 06:54:09 PM):

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141152171



As I stated in a post several years ago, it is futile to predict dates, times or amounts of any recovery for shareholders. However, here is a probability that might come to fruition as time passes.

Firstly, I think AZCowboy is right about interest money returning from the safe harbor trusts. He is most likely wrong about where that money will go.

Secondly, the safe harbor trusts were not included in the bankruptcy. No doubt, the trusts are where the value of WMI was and that value was the subject discussed at length behind closed doors during negotiations prior to the approval of POR7 and redacted in many of the bankruptcy documents. Additionally, no shareholder of any ilk owned the capital invested in those trusts or received the interest from those trusts before the bankruptcy and they do not own or receive it now. Those shareholders only owned their stock and its value. If the court had included those trusts in the bankruptcy, the value of the trusts would have been assigned to the WMILT and liquidated, and all shareholders would have already shared proportionately. As it is, ownership of the exempt trusts follows the rule of bankruptcy law.

The post in the link above is how I describe the process of exempt assets. Basically, it works like this:

Whoever owns assets that are allowed by the court to be exempt in a bankruptcy still owns those assets when the bankruptcy is closed. In this case the parent company - WMIH. I expect any capital invested by the parent company – WMI - in the safe harbor trusts and any accumulated interest from those safe harbor trusts to be returned to the parent company - WMIH - and not to the owners of the RELEASED SHARES or to holders of escrow markers. Apparently, some accumulated interest has already been returned to the parent company - WMIH. A recent example of who is in charge of the value of the trusts is when WMIH used some of the returned interest to fund an action with one of the company’s subsidiaries – without asking permission from the owners of the RELEASED SHARES or permission from holders of escrow markers. The parent company – WMIH - will decide how to use any returned value or how to pay any value to those who own RELEASED SHARES, not to holders of escrow markers. If there is a requirement to restore ownership levels to pre POR7 levels, it might mean if the value of the trusts is returned to the parent company – WMIH -, it will increase the value of the parent company and by default increase the value of the RELEASED SHARES, requiring a forward split to bring the PPS down to a tradable level. Because all pre POR7 shares were converted to common, Ps and Ks will probably not be restored. For example, if $xxB is returned, increasing the value of WMIH, a calculation based on that value would be passed on to those who own RELEASED SHARES by doing an appropriate forward split of the original RELEASED SHARES. Ps and Ks had their shares converted to many times more commons than QUs and would be lumped in with common RELEASED SHARES for a forward split.

Notice I emphasize RELEASED SHARES. It is irrelevant who owns them, and it is irrelevant what your escrow marker number is. The only thing relevant is what affects the RELEASED SHARES and by default, the owning shareholder. Basically, John Doe shareholder has only those rights which affect a RELEASED SHARE he owns. If someone later buys that RELEASED SHARE John Doe shareholder has no further rights in the RELEASED SHARE he sold. The danger here is if John Doe shareholder has 2K RELEASED SHARES and sells them, he may have lost his right to participate in anything forthcoming to RELEASED SHARES. The right to participate will belong to whomever bought the RELEASED SHARE. It may be the reason behind the buyback. The RELEASED SHARES are more valuable than new shares because of their potential to receive good things when the safe harbor assets and interest income are returned to the parent company, such as a forward split. It is unlikely the escrow markers will be used for future calculations on returned monies. I think it is the RELEASED SHARE itself that holds the value. What if this is true and the parent company holds the majority of RELEASED SHARES when any income values from the trusts are released? Who owns the most RELEASED SHARES now? Who is collecting more RELEASED SHARES every day? Think about it.

This is only another hypothesis or theory. I offer no links of proof, but the clues and rules of bankruptcy are there if you look for them.

I hope I am wrong and all who subscribe to the theory of direct payment based on the escrow markers are correct. My escrow number is 500k and my cost is around $0.07 per share. I bought in because an equity committee was formed, because Willingham bought 1M shares, and because the value of the parent company was touted as an amount around $370B. That money has to be somewhere. Lastly, I counted on a good ROI from my RELEASED SHARES or from my escrow markers. Holding only original RELEASED SHARES, I am ahead right now by a little over $18K. I think the PPS will get a lot better.

Good fortune to all.