Mr Cooper Group Inc (COOP)

[rramirez82]

JPM's Latest Stall Tactic

They're trying to go above Judge Walrath's head and seeking withdrawal of the reference from the Chief Judge of the Delaware District Court (note, they're not writing to the bankruptcy court).

http://members.cox.net/raggztwitches/JPMLetterToJudgeSleet.pdf

I didn't scrutinize the authority they presented in citing Lubin case too much, but in my opinion it is weak. The case is a Georgia District Court ruling from the 11th circuit, so it won't be all that strong in the Delaware District Court - which follows the 3rd circuit. Moreover, JPM's direct citation of Lubin in the second paragraph (seeking mandatory withdrawal) is baseless as the principal of "necessity" behind JPM's FIRREA argument was already decided on by Judge Walrath in WMI's favor. It also requires an affirmative determination by the district court on a standard of law which JPM stands no chance of meeting (BOPFAN has covered this many times). As for permissive withdrawal (the only other mechanism for withdrawal), JPM's argument fails on it's face because they're clearly forum shopping, causing confusion, decreasing uniformity in the bankruptcy administration and inefficiently diminishing the parties' economical use of resources -- all requisite criteria for permissive withdrawal and none of which JPM has.

I expect this to be denied by the District Court and hope Judge Walrath brings the "wrath" of God (and the Bankruptcy Court) down with that hammer on the 24th. She is going to be pretty pissed with JPM for going over her head to once again undermine her decision. This charade needs to end and it needs to end soon.

WMI, please make it rain.