"Freeze Request" and What it means
from the YHOO board --
<<"Freeze Request" and What it means 26-Mar-10 03:51 pm Thanks to Ghost for posting the new document filed by the debtor's counsel, in which the parties (the debtor, jpm, fdic), appealed to Judge Sleet to "freeze" the actions in the Bankrupcy Court. In their own words, [on March 12 agreement] "... Although the parties are optimistic that they will be successful in finalizing their agreement, there is no absolute certainty in this regard or that the Bankrapcy Court will approve any agreement presented to it.
Giving these developments, we are writing jointly to respectfully request that the Court temporarily stay or "freeze" the actions to permit the parties to focus on finalizing their agreement. Subject to the approval of the Court, the Parties agree that it is in all Parties' interest to preserve the status quo in the actions until the agreement is either finalized or abandoned." (See Ghost's thread "Delaware Appeals Court - Freeze Request to Sleet")
In my view, this request indicates two things:
1. The Bankrupcy Court Judge (THJMW) may not view their (March 12th) agreement favorably. They know it.
2. The Parties (the debtor, jpm, fdic) are so afraid that THJMW will go ahead with SJ ruling in the debtor's favor (how ironic now the debtor is afraid of taking back its own money.)
The action (I believe SJ ruling in this case) will disrupt the Parties' plan in two ways.
(1) Deposit goes back to the debtor's estate, plus incoming tax returns, A > L is within sight. Once the fact of A > L is established, the EC can rightfully force the debtor to pay off the creditors and take over the bankrupcy/litigation process.
(2) As I said following the announcement of March 12th agreement, a SJ ruling by the Judge will turn the media and public's attention on jpm/fdic. Unpleasant questions will be raised about the seizure and fire sale of Wamu bank, which had large amount of cash on hand at the time but seized and sold out by less than a fraction of its own cash.
While we are waiting for the announcement of POR, just give some thoughts on its "predecessor". If the POR looks pretty much the same as March 12th agreement, based on my reading on the "freeze" request, I don't think such a plan will be received well by the Judge. Rating :
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