WE ALL HAVE ECONOMIC INTEREST
Rosen hints at his reason for the motion to disband in the motion, but also feels larger institutional investors protect our interests by extension. I get a kick that Rosen once thought, or still does think, that large institutional investors have our back..
1. Additionally, besides the significant and needless expenditure of the Debtors' assets, the appointment of the Equity Committee will interrupt the administration of these estates to the detriment of those with an actual economic interest. Not only will time be lost while the Equity Committee's sure-to-be retained professionals get up to speed, but the sudden addition of another official committee to the complex litigations and negotiations that have been ongoing could imperil the Debtors' efforts to reach a global resolution with all parties and timely make distributions to creditors. Indeed, almost sixteen (16) months into these chapter US_ACTIVE:\43245934\06\79831.0003 2 11 cases, it is both unfair and unnecessary to foist the expense of an Equity Committee, including their retention oflega1 counsel and financial advisors, on the Debtors, and, ultimately, the Debtors' unsecured creditors - the true parties in interest. To the extent equity holders have any economic interest in these cases, such interests are already being adequately represented in these chapter 11 cases by the Debtors and the Official Committee of Unsecured Creditors appointed in these cases (the "Creditors' Committee").
18. As noted above, the Debtors, the Creditors' Committee, JPMorgan, the FDIC, and other significant parties in interest have been, for many months, engaged in arduous negotiations with respect to the settlement of the multitude of outstanding legal disputes and the
formulation of a chapter 11 plan. While many issues remain in flux, as further set forth below, the Debtors believe that the addition of the Equity Committee at this juncture in the cases would disrupt, and possibly even derail, the delicate ongoing negotiations between the parties.
Excerpt from letter written to Trustee dated December 4th 2008
2. Further, the Debtors' equity holders include numerous large institutional investors who possess the resources and the ability to protect their respective interests and, by extension, the interests of all equity holders, without the need for an official
Committee. Mr. Rozenfeld and other equity holders may appear and be heard on any issue in these cases pursuant to section l109(b) of the Bankruptcy Code; therefore, he
and the equity holders he purports to represent will be able to represent their interests in these cases without an official committee. To the extent that the Court later determines
that Mr. Rozenfeld or a similarly situated equity holder provides a substantial contribution to the estates, opportunities exist to be compensated for such results.
Here’s a nice statement
In short, WMI's equity holders are unlikely to receive any recovery and, therefore, have little, if any, economic interest in these chapter II cases.
3. Additionally, besides the significant and needless expenditure of the
Debtors' assets, the appointment of the Equity Committee will interrupt the administration of
these estates to the detriment of those with an actual economic interest. Not only will time be
lost while the Equity Committee's sure-to-be retained professionals get up to speed, but the
sudden addition of another official committee to the complex litigations and negotiations that
have been ongoing could imperil the Debtors' efforts to reach a global resolution with all partiesand timely make distributions to creditors.
I thought we all had an economic interest since we all at one point of time decided to throw our hard earned money at Wamu in the past…
WE ALL HAVE ECONOMIC INTEREST
AI
