Mr Cooper Group Inc (COOP)

[hahawin]

Companies in Chapter 11 do not have to sale assets to payoff. Most companies entered into Chapter 11 were struggling to pay interest of debts, filed chapter 11 to relief such burdens, In Wamu case, Wamu has no burdens on its long term debts. It entered into B.k was purely due to the seizure of WMBs. all holding companies have to file B.K when its banks seized to prevent further loss ,protect its assets and claim its necessary rights,and of course revaluate its assets and the equity of stock,set up its new business plans,then come out again as a refreshed new busines. WamU has been raped and in sickness, it is in hospital to be cured now. WaMu is not dead !It will come out strong again.

http://www.investopedia.com/ask/answers/190.asp

Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.

If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.