Mr Cooper Group Inc (COOP)

[W3Research]

WAMUQ: Interesting Yahoo Post: Buyout ...

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=49926&mid=50010&tof=10&rt=2&frt=2&off=1

I wondered about IndyMac shareholders because I understood there was a recapitalization afoot that would wipe out equity.

WMI's situation is very different: there won't be a restructuring; just a grafting of WMI's assets into a healthy entity with an additional payoff by the FDIC to settle the fraudulent conveyance claim (the FDIC does NOT want a ruling on the value of the seized assets!).

The buyout portion will take care of debt and preferred but the settlement of the fraudulent conveyance claim will be what saves the common shares from worthlessness. Cash is at a premium all round, so the acquirer will want to take the cash settlement portion as well as the $4.4 billion, NOL, and other assets and give its common to WMI's common. The preferreds and debt will probably get reenstatement rather than stock.