Rocket Companies Inc (RKT)

[DocKB]

For what it's worth, again (repetitious, but maybe clarifying for some):

Gemini said----
In the Washington Mutual (WMI) bankruptcy case, the Sixth Amended Plan (Plan 6) was a pivotal but ultimately unconfirmed step that laid the groundwork for the eventual liquidation trust.

The user post you are viewing highlights a common point of confusion: while the case eventually settled under Plan 7, much of the "Plan 6" framework—specifically regarding the Liquidation Trust (LT)—was discussed and partially established during the Plan 6 hearings.

The Contents of the "Plan 6" Liquidation Trust
Under the Plan 6 structure, the Liquidation Trust was designed to manage assets that were not immediately distributed upon the plan's effective date. Key contents and characteristics included:

Initial Funding: It was designed to be funded with $20 million specifically for litigation (the "Litigation Funding"), often split into tranches to be overseen by a Litigation Subcommittee.

Asset Transfers: The trust was intended to hold "Liquidating Trust Assets," which included all remaining rights, titles, and interests of WMI and WMI Investment Corp. that were not distributed directly to creditors.

Control Mechanism: A significant development during the Plan 6 hearings was the Equity Committee (EC) requesting and being granted a level of control over the Liquidation Trust. This was intended to ensure that equity holders had oversight of the recovery process from remaining assets.

Purpose: The trust was strictly a "liquidating" entity, meaning its sole legal objective was to convert assets to cash and distribute them to beneficiaries, rather than engaging in ongoing trade or business.

Plan 6 vs. Plan 7 (WMI-LT)
The WMI-LT (WMI Liquidating Trust) that most investors are familiar with was technically established under the Seventh Amended Plan (Plan 7).

Why "Plan 6 LT" is Often Overlooked
As noted in the forum post, many modern summaries (and AI models) focus on Plan 7 because it was the final legal reality. However, the transcript of the Plan 6 hearings is where the actual "funding" and "establishment" of the trust oversight was argued and won by the Equity Committee. This "Plan 6 LT" provided the structural template that was eventually refined and adopted in Plan 7.