Mr Cooper Group Inc (COOP)

[Large Green]

CWG, excellent summation and door-on correct!

CWG, you said the following.

So, Ron. plan 6 ended at Class 16, nothing for preferred or commons.
Plan 7 was crafted to get equity a seat at the table.
It could have stopped with Class 19 and Class 22 would get nothing due to the APR.
Now according to you the APR was removed by the Court because Class 19 was “safe and protected” that they would be paid in full.

That is not how the Absolute Priority Rule actually works.
If there was enough money to satisfy Class19, then the remainder would move to the next class in line. THAT is how it works. That is why Class 1 got paid in full, 2-15 got paid in full, 16 (PIERS) got paid but had to reimburse a previous class for lost interest.(APR in effect)
Classes 19 and 22 (equity) received stock in WMIH 75/25 only because the Court removed the APR as required by Plan 7.
If the APR had still been in effect, as in all the previous classes. Class 22 would have been cancelled and Class 19 would have received all of the stock in WMIH.

Just remember Kmart.
Equity cancelled due to the APR and after the dust had settled, suddenly value was “discovered” but commons got screwed.
This happens almost every time, just not this time.





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