From what I've read about BK and priorities, lower priority cannot receive a higher percentage than higher priority. So if H's received about 68% of face, then wouldn't one think the P's and K's could not receive more than 68%?
If one assumes Rosen was going to try and screw equity, then one can see why H's agreed to only 68%. I'm not sold on this theory though because I think WMI will receive enough for creditors to get 100% and even commons to see some money.
IMO, it's quite probable for the P's and K's to see full face and for the H's agreement to be amended to receive full face.
So, in short, I think the H's would need to receive full face for the pref equity to see full face. Someone please correct me if I'm wrong on this.
