Mr Cooper Group Inc (COOP)

[ReikoBlack]

And...

From Court Hearing 4/22/2019

This is not word for word -

14:20 ==================================================================

Alice Griffin: Your Honor, it’s sorta like when you talk about what could come in the recoveries. I cannot prove definitely that there is going to be a recovery to Class 19 and Class 22, which are pari passu, but there certainly is a possibility there could be a recovery. And, I don’t believe anyone here can say otherwise. There’s never been an unambiguous statement.

Now, the Liquidating Trust has updated it’s FAQs section on it’s website in part because, i think, of my agitation in which it said WMB…they don’t expect anything from WMB and the WMB waterfall in the FDIC, which is understandable. Right now it seems to be insolvent to the tune of 14 billion.

Judge Mary Walrath: Alright, but either way…again, let’s go back to if they had tried this and what if the Liquidating Trustee had lost? There would have been a 100 million contractual claim, creditor claim, ahead of Classes 19 & 22.

Alice Griffin: Right, but if something came in, in excess that…

Judge Mary Walrath: Well, but…isn’t better…

Alice Griffin: I would rather have them then as creditors then have them diluting Class 19 by 1%.

Judge Mary Walrath: …rather than them getting 100% before you got anything?

Alice Griffin: Well, it depends on how much comes into the waterfall, your Honor. If it’s enough…because it’s capped as a creditor claim. It’s capped. Once they’re paid it’s over.

Judge Mary Walrath: Ok, but getting (100%) 100 million dollars versus getting 1% of your recovery, which could be anything. Isn’t getting 100% worse for you than sharing 1%?

Alice Griffin: I don’t...it depends on what comes in, your Honor.

Judge Mary Walrath: Currently, how much has come in?

Alice Griffin: Well, we don’t know.

Judge Mary Walrath: You’ve got nothing under the recovery waterfall...

Alice Griffin: No.

Judge Mary Walrath: …right?

Alice Griffin: Class 19 and Class 22, we’re pari passu with Class 22 getting 25% and Class 19 getting 75%. And, just for illustration, your Honor…basically, you need 10 billion dollars for the face securities in Class 19 to get Par. But, hypothetically, if there were twice that much it would mean that the Underwriters would get actually more like 144 (million).

Judge Mary Walrath: But, you would also get more than 100%.

Alice Griffin: Right.

Judge Mary Walrath: So,…

Alice Griffin: If they were capped to a creditor claim and say 20 billion came in…if they got their full 72 (million) they would get that, but Class 19 would not be giving up any value to these interest holders.

Judge Mary Walrath: But, if they had a creditor claim of a 100 million, that would be paid before you got anything.

Alice Griffin: Yes, absolutely.

Judge Mary Walrath: Based on what is currently anticipated that would be a worse recovery for you if they got their 100 million.

Alice Griffin: Currently, you Honor. But, we…a good many of us feel that there’s a possibility we could get substantially more than par.
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