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Re: None

Tuesday, 05/14/2024 7:57:39 PM

Tuesday, May 14, 2024 7:57:39 PM

Post# of 729848
Who are the beneficiaries receiving assets as per this? " Liquidating Trust Beneficiaries are deemed to receive the Liquidating Trust Assets in accordance with the provisions of this Trust Agreement, the Plan and the Confirmation Order in exchange for their Allowed Claims or Equity Interests, as applicable, without further obligation or liability of any kind, but subject to the provisions of this Trust Agreement."
Ans: This excerpt from the WMI Liquidating Trust Agreement defines who receives assets from the Trust and how they qualify:

Beneficiaries:

The document refers to them as "Liquidating Trust Beneficiaries." These are the individuals or entities entitled to receive a portion of the assets after the Trust liquidates (sells) its holdings.
Basis for Receiving Assets:

Beneficiary status is linked to having either "Allowed Claims" or "Equity Interests."

Allowed Claims: This likely refers to creditors of Washington Mutual (WM) or its subsidiaries who had valid outstanding debts when the company went into bankruptcy. The Trust might distribute assets to these creditors in partial or full satisfaction of their claims.

Equity Interests: This refers to shareholders of Washington Mutual before the bankruptcy. The Trust might distribute assets to these former shareholders based on their ownership stake at the time.

Distribution Details:

The specific terms for how assets are distributed are outlined in three documents:

This Trust Agreement: This document details the rules and procedures governing the Trust, including the process for distributing assets.
The Plan: This likely refers to the official plan approved by the court outlining the liquidation process for Washington Mutual's assets. It would specify how much of the Trust's holdings would be allocated to different classes of claims or equity interests.
Confirmation Order: This is a court order that formally approves the plan, making it legally binding.
Key Points:

Beneficiaries receive assets based on their claims or equity interests.
The exact distribution details are determined by the Trust Agreement, Plan, and Confirmation Order.
Once beneficiaries receive their share, they have no further obligations or liabilities related to the Trust.
It's important to note:

This excerpt doesn't specify the proportion of assets each beneficiary receives.
The specific details of who qualifies as a beneficiary and how much they receive would depend on the terms outlined in the Plan and Confirmation Order.
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So based on this, equity holders received Liquidating Trust Interests which are maintained in book entry form?
Based on the information provided and the excerpt from the WMI Liquidating Trust Agreement, it's highly likely that equity holders received Liquidating Trust Interests which are maintained in book-entry form. Here's why:

No mention of physical certificates: The excerpt describes ownership being recorded electronically in a book-entry system. This suggests there are no physical certificates issued for Liquidating Trust Interests.
Focus on book-entry system: The document emphasizes the book-entry system as the primary evidence of ownership for Liquidating Trust Interests.
Distribution to former equity holders: While the excerpt doesn't explicitly state "equity holders receive Liquidating Trust Interests," previous discussions mentioned a distribution of newly issued shares to some former equity holders. This suggests a connection between former equity and the Trust.
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