Mr Cooper Group Inc (COOP)

[XOM]

Comparing NADIE01, ILENES, FROGGIE484 Omnibus Recaps
Head-to-head comparison and analysis of three accounts of the omnibus hearing on July 8, 2010.


The scene

NADIE01: It was my third hearing and the first time I have seen Susman. Justin was sitting with him and they appear to get along well. He is a formidable looking person. At one point before the scheduled start time, he walked over to ask Rosen something. Rosen firmly said "No" and Susman asked something else and out came another firm "No". It may not have been anything important, but he seemed less than cordial in the way he replied to Susman.

ILENES: Susman went and said something to Rosen, fairly terse from their body language. After Susman walked away, Rosen turned to his co-counsel (toward me) and he was making a mocking face to them, referring to Susman.

XOM: Each account corroborates and completes the other.


High noon, minus two hours

NADIE01: Rosen handed out two documents, about 25 pages each (double sided) to selected individuals in court highlighting his last-minute changes.

ILENES: Susman and Nelson walked in just before 10.

XOM: The Susman/Rosen exchange occurred about 10AM. Again, Rosen was not expecting the closed-door meeting. Susman went to Rosen to give him one last chance to satisfy him. He was rebuffed. At 10:30AM, THJMFW summoned counsel into chambers.


Fred's mad

NADIE01: David Stratton of Pepper Hamilton, a happy-looking guy who always grabs a prime seat at the table (and then says and does absolutely nothing) looked unhappy as well. After the conference one attorney said, "Hey Fred" to Fred Hodara and got no reply. The attorney turned to me and said, "Fred's mad."

XOM: Why would Dave and Fred be mad? Akin Gump & Pepper Hamilton represents Committee of Unsecured Creditors, which includes Wells Fargo as Indenture Trustee for WAHUQ. Hodara Affidavit (Docket No. 260) cites current representation of David Bonderman, WMI BoD member Regina Montoya as former partner, previously repr. FDIC, and currently repr. subsidiaries of JPMC. [5]


The sealing

ILENES: After the Judge called for a meeting in chambers, there was talk it was to be only two people from each "delegation". Scuttlebutt about conference on a "ceiling" [sic]. Then more attorneys called into chambers. Pretty soon it was a fairly empty courtroom.

NADIE01: "Around 10:30, things got more interesting. Everyone assembled, I mean Rosen in his chair, no more chats, as if we were going to start. Then Rosen got the message about the chambers conference."

XOM: ilenes may have interpreted "sealing" as "ceiling"[3]. Rosen did not anticipate the turn of events.


Quinn's bad day

FROGGIE484: when the lawerys showed back up i noticed quinns gang looked scared and miserable.They were all joyful when they arrived, they were talking about there kids, vacations, etc. But when they came back they looked worse than rosen looked.They were saying this aint good and texting away like mad, every single one!!! I been try to putmy head around it but why would quinns gang look worse than rosen?

XOM: Bopfan alluded to this scene as caused by a threat to the lawyers' "own hides". FYI Quinn Emanuel has billed WMI $8,760,277.44 in fees and expenses CTD. [6]


Rosen's idea

NADIE01: It was said that it was Rosen's idea to add JPM and the FDIC to the conference.

XOM: Two of the nine items on the agenda that day were EC motions for 2004 discovery of FDIC and JPMC.


Held out for more

NADIE01: After the conference, I talked to an attorney in the hallway who was a participant and he said that what was being discussed was "good for equity". Then he said, "I think maybe they should have held out for more, but I think they decided to (take what they can get)." Of course I said, "You mean about the terms for the examiner or the dollar amount of a settlement?" He said, "I can't tell you that."

ILENES: Then, more texts and from another source, information that one of the parties was disappointed, saying they "should have held out for more

XOM: nadie01 seems to be the source for both accounts. In context it seems the lawyer was referring to the EC "deciding to take what they can get". Regardless of what "holding out for more" is, it suggests the EC was definitely in a strong position with the sealed filing.


CONCLUSION
This was no ordinary omnibus for the EC. The last-minute filing under seal did not appear on anyone's radar. Susman went to Rosen himself to get what he wanted and was refused. Minutes later, EC went to Walrath to review the sealed docs. All counsel was subsequently summoned to chambers. Several things happened behind closed doors: Quinn's team "this isn't good" meant something directly affected them in a very bad way, which I believe may relate to their performance vs. $8MM in fees (evidence in support of an examiner). UCC counsel was upset - because their payola via "global settlement" is delayed (perhaps) or because their conflicted clients FDIC and JPMC are under imminent threat (evidence in support of appropriate scope of discovery). Rosen calls a special meeting to address discovery, examiner issues on the agenda.

"should have held out for more"... if the lawyer who divulged this to nadie01 was an EC adversary his statement implies a lot of strength of Susman's docs under seal. "take what they can get"... taken together would lend credence to WithCatz' theory re. discovery being the central plot of Thursday's drama - as a corollary, would give the EC a place at the negotiating table, since the evidence Susman seeks would complete Solomon's valuation and by its nature undermine the GS and implicate WMI's legal team in collusion with its adversaries.

A tense week, for sure. GLTA



SOURCES

1. ILENES RECAP
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52097427

2. NADIE01 RECAP (repost courtesy of uzual)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52136257

3. ILENES on "ceiling" vs. "sealing"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52166440

4. FROGGIE484 RECAP
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=tm&bn=86316&tid=503634&mid=503634&tof=20&rt=2&frt=5&off=1

5. Objection of the Consortium of Trust Preferred Security Holders to Debtors' Motion for Approval of Disclosure Statement for the Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code
http://www.kccllc.net/documents/0812229/0812229100511000000000004.pdf

6. Monthly Operating Report for Washington Mutual, Inc., et al for the Period May 1, 2010 Through May 30, 2010
http://www.kccllc.net/documents/0812229/0812229100630000000000003.pdf