Mr Cooper Group Inc (COOP)

[rramirez82]

Jest: The significance of the bondholders/noteholders is that they own WMI debt and are guaranteed either (a.) a percentage of the value of the debt upon liquidation of the WMI estate if we were to proceed in chapter 7; or (b.) a percentage of the value of the debt upon acquisition of WMI.

The noteholders/bondholders intervened in the litigation because they want to make sure the WMI estate recovers the most it can. The more WMI recovers, the more of its outstanding debt that it can pay off. Keep in mind that in the winding down of a company, the debt/creditors must be paid before any proceeds can flow to equity/stockholders. They don't care about equity like WAMUQ -- they only care about WMI debt being covered. The noteholders/bondholders group initially objected to the settlement over the savings plan and I wouldn't be surprised if they object to any settlement between WMI and JPM if the terms aren't as favorable to them. The recovery that the bondholders are anticipating (just like us) is either going to come from damages or settlement with JPM/FDIC.

This is of importance to JPM because I strongly believe it intends to proceed with the second option -- settling the litigation and acquiring WMI -- where its acquisition of WMI would hold JPM liable for WMI's debt and any/all exposure thereof. By filing this motion, I think JPM is trying to identify who holds WMI debt and how much they're due -- possibly to try and negotiate with these bondholders/noteholders to reduce the debt and leave more equity for acquisition -- that way, when the settlement is complete and aquisition takes place, JPM will be buying out a cash-rich company with controlled/limited exposure to debt.

That's just my honest opinion and I hope it answered the question you asked in your PM (I don't have PM capabilities with my account). Good luck to everyone and go WAMU!