Mr Cooper Group Inc fka COOP

[JohnnyWinter]

It is common knowledge that WMI will get "some refund".

"Oh now you agree we will get some refund."


This is a very simple issue, and if total liabilities are 9B an total assets are 8 B, then the commons are not in the money. Commons are actually more than 4.5B short of being in the money because WMI has to issue $3.9 billion in NEW PREFERREDS due to the exchange event (aka the preferred securities referenced in WMI's MORs ).

"This a very simple issue.

Total Liabilities ~ 9B

Total Assets ~ 8B

Preferred Share ~ $3.5B (Not due anytime soon so pay divis and 3.5B would only cost the estate about $300M/yr). Therefore, commons would immediately be in the money. Only at liquidation is all the money due.

So commons are $4.5B short of being in the money. "


Worst case for WMI is not that "we split it 50:50" .


Tax refund of ~$7B and we split it 50:50 worst case = $3.5B


"Now all we need is the Judges to get this moving. "

"1. Re-evaluate the sale price. "

When this happens the BANK creditors will get paid.

"2. Give back FSB and Providian. "

FSB and Providian are not coming back and WMI isn't even asking for them back.


"3. Goldman Sachs purchase of the wind power business. "

When WMI Investment corp. sold their interest in the joint wind-venture they actually lost money per WMI's own MOR.


"4. 5 Million Shares of Series A Visa shares. "

These were part of the bank, and even if they weren't they aren't worth even close enough to put the commons in the money.

"5. Subsidiaries "

The subsidiaries that WMI has left aren't worth very much at all and there has been no "dd" that proves they have high worth.


"6. Return of Trust Assets. "

Since you didn't even reference which trust assets you feel will be returned and since you didn't even reference a "worth" of these assets I'll leave this alone for now.




I can go on too.


How about this ...


"24. The Debtors are currently insolvent. The Debtors' financial position subsequent
to the loss of their primary operating asset, WMB, is reflected on their schedules filed with this
Court which indicate $4.48 billion in assets and $7.83 billion in liabilities. This reality is further
bolstered by the presumption of insolvency afforded debtors pursuant to section 553 of the
Bankruptcy Code for the 90-day period immediately preceding the petition date See 11 U.S.c. §
553(c). It is the setoff applicant's burden to establish otherwise. In re Balducci Oil Co., 33 B.R.
847, 850 (Bankr. D. Colo. 1983). Although the Debtors have asserted claims to certain assets such as trust preferred securities and prospective tax refunds, both JPMC and the FDIC have
asserted claims against the Debtors for more than the total amount of such assets.

Further,
more than $100 billion in claims have been filed against the Debtors' estates in these chapter 11
cases. While a significant portion of these will not likely be allowed, they are further evidence
that the Debtors are currently insolvent and would be at the time of any exercise of Section 9.5.
Therefore, invocation of Section 9.5 would consist of a postpetition procurement of a debt of the
sort that section 553(a)(3) of the Bankruptcy Code prohibits from forming the basis for any
setoff."

Now I know where they are going with the section 9.5 argument, but the following item is what should be considered troubling to shareholders imo.

38. The further delay imposed on the Debtors threatens to derail the Debtors' chapter
11 cases. The $4 billion in Deposits are significant estate assets CRITICAL to the Debtors chapter 11
process. The recent amendments to the Bankruptcy Code impose a HARD DEADLINE of March 10,
2010 on the Debtors' exclusive period to file a chapter 11 plan. If the Debtors recover the
Deposits from JPMC, they will be well-positioned to file a plan in advance of their exclusivity
deadline. Without the Deposits, however, the Debtors will not be able to construct a viable plan
BENEFICIAL TO THEIR CREDITORS."


http://www.kccllc.net/documents/0812229/0812229091112000000000001.pdf