Mr Cooper Group Inc (COOP)

[JohnnyWinter]

People have the misconception that reorganization is the "better" bankruptcy.

Even if WMI gets to keep the $4B and gets the entire NOL and $3B tax refund. Including the TrustPreferredSecurities and the WMI preferreds, there wouldn't even be much equity left for common value. Even if there were an excess of say $2.1 billion, that value wouldn't go to current shareholders. The equity would be redistributed to creditors in place of cash in the form of new equity so the debtors don't have to give up all of their operating cash and they have the ability to raise capital through the issuance of stock for financing purposes. They are not going to fund their operations by issuing stock at cents or even $1-$2 . Chapter 11 is a beautiful thing for companies that are lucky enough to have a legal team that has it together, and the last time I checked, Weil isn't notorious for looking out for the interest of shareholders of the companies they represent.

The best thing you all have going for you is the FDIC lawsuit, but that is going to be quite a wait, so you better hope Weil and the other attorneys/consultants don't try to come up with a weasel plan to reorganize stating that a recovery from the FDIC is either unlikely, or would take so long that it would prevent the debtors' from efficiently reorganizing and would therefore cancel the current shares and reorganize, thereby leaving pre-seizure shareholders the last option of filing lawsuits related to their losses.