Washington Mutual Preferred fka WAMPQ

[kirby96]

The EC votes on behalf of all equity - that includes preferreds. If there is anything for the preferreds then there are no other impaired classes by definition (all creditors and bondholders are satisfied) - the 'cramdown' in other words. If the POR comes to a vote then Susman will have done all he could do.

Again, this is factually incorrect. CLASSES vote, not COMMITTEES. Common and Preferred equity are in different classes. The reasons for this are obvious. Consider a bankruptcy (not WMI) where there is $50 of debt, $50 of preferreds, and then equity. Let's say this estate has $75 of cash and no other assets. The court would not allow the common equity holders to supercede the best interests of a class senior to them and vote against distributing $50 to the debt holders and $25 to the preferred holders. This is why a plan needs the consent of one impaired CLASS. A committee has nothing to do with it.