Washington Mutual Preferred fka WAMPQ

[climberprof]

WHy would any company pay reorg'ed WMI $12pps to get $20B NOLs?

This is like paying $12x1.7=$11.76B to get $20B, it does not make sense. Does it? May be $10B but definetely not $20B.

Another point is that in Cph 11 , in reorganization, I do not think that the prefs have to be paid in FV before commons see anything. If it was Chp 7, liquadation, then it is true but not in Chp 11.

Prefs. can and will see a haircut.

AIMHO.

Best
Climber