Dime Bancorp Inc (fka DIMEQ)

[Bluzie2]

Not a bankruptcy expert either, but I found this article to be an interesting read:

http://www.turnaround.org/Publications/Articles.aspx?objectID=1132

It would appear that the resolution to the Broadbill complaint will depend on how the court interprets the LTWs. Weil appears to be positioning to argue that the LTWs are executory contracts that have not yet been fulfilled. Presumably, they'll argue that the fact that the LTWs don't convert to stock until after a final payment is made shows that the contract is executory. They'll then seek to reject to contract and transfer the litigation to JPM.

Presumably, Broadbill will argue that the contract has largely been honored by the LTW holders (they hold the warrants - no further consideration is necessary), and that the only matter in dispute is whether the government owes the additional $60M. They'll also point out that the original ruling with respect to the Anchor litigation predates the WMI bankruptcy filing. In that instance, while there is still a dispute about the magnitude of the amounts owing, they'll argue that the "trigger" for LTW rights was Block's (sp?) original ruling, or as a secondary matter, the appeals court's upholding that ruling.

Anyway, I'm no bankruptcy expert, but that appears to be how things are sizing up. I still don't see an answer to Broadbill's complaint, by the way.