Washington Mutual Preferred fka WAMPQ

[hahawin]

Wamu's B.k is unusual and very unique.

Wamu has 5 times assets more than its liabilities. There are no secured creditors, all are unsecured crditors with long term debts,no immediate debts and pressure to pay the bill,furthermore it has $4.4B in cash, cash is vital important for B.K companies. unlike most of B.K company files B.K for the reason of cash flow problem.

If creditors are confident that Wamu has sufficient capital to run business again without having pressure paying its debts, they likely willing to keep their safer role as lenders,instead of becoming investors. In B.K, debtor might be able to negotiate them to get even better term on debts. Therefor, Wamu's chapter 11 might come out a very few change that shareholders are still keep their shares and preferred stock resumes its dividend payment( that is $77.5/share dividend, if you owned 1000 share, you will get pay $77500/yr, you can retired), My opinion is that after Wamu completes and emerges from B.k, it could soon be bought out or merge with other financial institutions. Buyout will not ocurr during B.k processing period.

Unlike most of B.K companies,WaMu wasn’t insolvent to file B.K. It just like i said on last post:
"Because:
Wamu needs B.K court to obtain its NOL benifit.
WaMu needs B.K court to recapture its $4.4B cash in JPM banks
Wamu needs B.K court to against any claim rised from the result of seizure of WMB.

filed chapter 11 is necessary step to consolidate its business and protects company assets being further taken away after the seizure of its banking units by FDIC. "

Mark Northrup, a partner with law firm Graham & Dunn in Seattle, who specializes in creditor-debtor relationships, says there’s no legal requirement that a company has to be insolvent to file a bankruptcy petition.

“I think they’re doing it because filing a bankruptcy is just the formal way to wind up your affairs,” Northrup says. “If they don’t file, there will be loose ends.”

http://www.bizjournals.com/austin/stories/2008/09/29/daily12.html

http://findarticles.com/p/articles/mi_kmafp/is_/ai_n13272782