~ Hello JJ, I Hope You Are Doing Well', Old Friend ~
"Thanks AZ.. Would you clarify your theory on returns in multiple stages? Would that full payment staged by one cusip after another or possibly periodic returns within a cusip? Or something else?"
Lets See, In My Opinion, There is a reversal of possible distribution mathematical mechanics, that is going on' ... stick with me' ... a preferred fixed income bond offering, is not' pari-pasu with a common share ownership of a company' purchase ... and, with the language in the actual Disclosure Statement and the POR, being so misunderstood ?, its no wonder that people are confused' ...
So, WE Have TWO Distinct Separate Processes That are ongoing' ... BOTH (as I already know you understand), are related to the "management" of the present tense "WMIH" Holding Company' ...
the First ?, is the "WMIH" Preferred Managing Sub', ... which remains related to an original released P' or a K', ... and the funding that has been deposited into it' ... So, those inbound funds, have been depreciating and', those funds have also been used to pay' the B' Preferred 3% "Cash" Coupon to KKR, as well as the Run-Off Note Responsibilities' (yes, its all documented) ... the "tranches" are not completed yet, But many have been zeroed out over time' ... So, those funds have been diminishing' ...
the Second ? is the WMI Capital Trust' the Capital Trust related to a common share, operates differently', ... the Cap Trust went into a three point "Liquidation Preference" when WMI Filed for Chapter 11' ... through a series of "Documented" events, ... the Debenture Support, was never touched' as the "piers" were paid off with WMI's Cash' ...
So, ... Back To Your Question, ... Yes WE are talking about substantial sums of money, still being managed by the now reorganized WMI, or WMIH the Company' ... and ... "IN MY OPINION" ... as these aligned WMIH Preferred Managing Sub Inbound Cash Producers diminish in value ?, yes the accumulated interest generated, will still take some time to complete the "interest" returns to the original releasing owners' ...
That Cap Trust ? ... In My Opinion, That IS A BIG DOG' and the Debentures Are Worth Billions of Dollars ?, and, are able to be utilized by WMIH as debt support collateral, in the exact same fashion as WMI used them ...
So, in my opinion ?, ... a release of the accumulated interest funding ?, would in and of itself take more than a few taps of the checkbook, ... and the Cap Trust "should be" in its liquidation preference for many years to come ... and, while it is in liquidation preference ?, the company WMIH can use the debt support, while a "point three" recipient ?, will continue to receive ... an original releasing common share owner, now depicted by the DTC's Issued ESC Cusip # 939ESC968 ...
I hope that helped ...
AZ
