The “Separateness” … Just a little Research and all IMHO…
My thoughts on this part of the document.
Which is the whole problem.
(The Separateness of WMI and its subsidiaries)
And,
some are confusing our contra-CUSIP positions with our escrow positions…
Quote…
“Unfortunately, Griffin chooses to disregard the separateness of WMI and its subsidiaries and claims that certain assets of WMI’s subsidiaries, especially those of WMB which were seized by the FDIC and sold to JPMC, are assets of the Debtors and the Debtors’ chapter 11 estates”
End quote.
So, from the above excerpt…
We have WMI and its subsidiaries,
And,
the Debtors and the Debtors’ chapter 11 estates.
all IMHO…
WMI had subsidiaries with Debt… and subsidiaries without Debt.
So, we have Debtor’s assets and non-Debtor’s assets.
Which is also,
the FDIC-R (the Debtor’s assets)
and the FDIC-C (the non-Debtor’s assets) …
The bankruptcy,
is about paying back the Debt.
Which is paid from, $8 Billion Dollars in Debtor’s assets at the FDIC-R.
(Which is our Debtor’s Estate)
What the court is saying is…
The preferred and common shareholders will not receive anything from the Debtor’s Estate’s,
$8 Billion Dollars in assets.
IMO,
The only way,
Preferred and common shareholders, would receive a distribution from the $8 Billion Dollars, Debtor’s Estate assets…
Is if AAOC was found guilty, with insider trading, and were denied their claim…
By the way,
This is also an example of the 75% 25%... so, bear with me for a moment…
The 75%, 25%... is there… just not the way some think it is…
If The AAOC’s claim were denied …
The AAOC’s claim assets, (the distribution) would be distributed 75% to the preferred shareholders claim, and 25% to the common shareholders claim.
The wording in the document is not, everything will be divided 75% to the Preferred shareholders and 25% to the Common shareholders.
But instead, it reads, 75% to Preferred shareholders Claims on account of Allowed Claims, and 25% to Common shareholders Claims on account of Allowed Claims.
The language is specific to what is owed to that class.
So, you need to know what is your Claim.
As in RRR…
RRR. No holder of a Claim or Equity Interest will receive more value than such respective Claim or Equity Interest (based on liquidation preference amount).
For instance… The preferred shareholders Claim is $7.5 Billion Dollars.
So,
If there were $4 Billion Dollars available for Distribution from the first distribution.
(Which would be from the $8 Billion Dollar… Debtor’s Estate)
The preferred shareholders would receive 75%, or $3 Billion Dollars, and the Common shareholders would receive 25%, or $1 Billion Dollars.
Then…
The preferred shareholders (which are equity holders) would receive the rest of their claim… ($4.5 Billion Dollars)
from the second distribution, which is from the FDIC-C. (the non-Debtor’s assets)
The preferred shareholders would receive 75% from each distribution, until they are paid in full… which is $7.5 Billion Dollars. (Or $1000 Dollars per/share)
The $7.5 Billion Dollars is our… “claim on account”.
(No holder of a Claim or Equity Interest will receive more value than such respective Claim or Equity Interest (based on liquidation preference amount).
So,
The 75% / 25%, is there…
It’s just not 75% of everything, will go to the preferred shareholders… after the Debt is paid.
It’s actually…
After the Debt is paid… 75% of any distribution, will go to pay the preferred shareholders claim, until the preferred shareholders claim is paid in full.
Sorry…
about the 75% / 25%... sidetracking.
But,
The words claim on account, is the preferred shareholders $7.5 Billion Dollars escrow position.
What I was trying to say is…
The excerpt above says,
There are two sets of assets… and they are separate…
The Debtor’s Estate assets,
(FDIC-R)
and the non-Debtor’s assets. (FDIC-C)
And it also says…
The preferred and common shareholders won’t receive anything from the Debtor’s Estate assets. Which are assets used to pay the $8 Billion Dollar Debt.
This is the “Separateness”.
From page 13 of the revised DISCLOSURE STATEMENT,
K. Assets of WMI’s Non-Debtor Subsidiaries
Pursuant to applicable law, and as stated by the Bankruptcy Court at the March 21, 2011
hearing, the Bankruptcy Court’s jurisdiction is limited to assets of the Debtors and not to those of any non-Debtor subsidiary.
So,
The Debtor’s Estate assets are the Debt… and the Bankruptcy Court’s jurisdiction is limited to The Debtor’s Estate assets.
The non-Debtor’s assets are the preferred and common shareholders, equity…
Debtor’s Estate assets. And non-Debtor’s assets are different and handled separate.
As we know,
Equity is… total assets, minus total liability/Debt
So,
With $307 Billion Dollars in assets at the FDIC,
And about $7.3 Billion, from the WMI’s Non-Banking corporate structure, including cash.
We have $314.3 Billion Dollars in Total assets… all cash.
The $8 Billion in Debt, was settled for $7.3 Billion Dollars in the Bankruptcy.
So,
$314.3 Billion Dollars in Total assets… minus $7.3 Billion Dollars in Total Debt,
Brings it back down to the $307 Billion Dollars.
$307 Billion Dollars is Total Equity…
or all of the “non-Debtor’s assets”.
So…
Now we should consider QQQ. And RRR. from the…
FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER CONFIRMING
THE SEVENTH AMENDED JOINT PLAN.
Because,
some are confusing our contra-CUSIP positions with our escrow positions…
Our contra-CUSIP positions… or our 3 CUSIP numbers…
Are for the distribution of the new company, disputed shares only…
And our…
escrow position, is for the distribution of the $307 Billion Dollars in non-Debtor’s assets.
QQQ. and RRR. Refers to are escrow position. Which is our, Allowed Claim.
But…
This Post is getting a little long…
I’ll stop here and continue on a new Post.
About…
our contra-CUSIP positions and our escrow positions…
All IMHO and GLTA…
Stay safe… Stay healthy
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
-------------------------------------------------------------------------------------------------------------------------------
Notes,
This is from the Disclosure Statement…
(it’s about our escrow positions. Which is our Allowed Claim and is based on our original shares.)
QQQ. The Plan provides for payment of Allowed Claims and, if appropriate, Postpetition Interest Claims on account of Allowed Claims. Id. ¶ 67. Distributions to claimants will be made in Cash, Liquidating Trust Interests that represent the right to receive future Cash distributions from the Liquidating Trust and, in certain circumstances, Runoff Notes and/or Reorganized Common Stock.
Id. No Class is projected to recover more than one hundred percent (100%) on account of the Claims or Equity Interests, as the case may be, classified in each Class. See Conf DX 432C - Disclosure Statement, Ex. C at 4-5.
RRR. No holder of a Claim or Equity Interest will receive more value than such respective Claim or Equity Interest (based on liquidation preference amount).
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This is from pdf page# 355/755 of the DISCLOSURE STATEMENT
(It’s about our contra-CUSIP positions and escrow positions.)
Quote…
…The Trustees may conclusively rely upon the distribution instructions received from the debtors or their agents with respect to contra-CUSIP positions and escrow positions set up by the Debtors or their agents with the Depository Trust Company, and the Trustees shall close and terminate the original CUSIPS after making initial distributions of Creditor Cash and shall have no further distribution obligations thereafter…
End quote
And from…
WMI LIQUIDATING TRUST
FREQUENTLY ASKED QUESTIONS (“FAQS”)
(This is about our contra-CUSIP positions. And is based on our Disputed shares)
#12. What are Escrow CUSIPs?
…Upon resolution of those Claims, the related portion of the shares maintained in the
Disputed Equity Escrow will be distributed to claimants holding the newly allowed claim or, if
the claim is disallowed, the related portion of the shares will be redistributed to beneficiaries of
the Trust in accordance with the distribution mechanics set forth in the Plan. In the event any
future distributions of Reorganized WMI’s common stock are made from the Disputed Equity
Escrow, DTC will be instructed to allocate such common stock to each of the Escrow CUSIPs on a pro rata basis.
GLTA.
AI
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