Mr Cooper Group Inc (COOP)

[dix]

A disclosure statement, by definition, is a written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide "adequate information" to creditors to enable them to evaluate the chapter 11 plan of reorganization

"to creditors"

Look at it this way, EQUITY is not a creditor. If the DS is inadequate per statute but acceptable to the Creditors why would they put forth objections (other than clarifying language in this case)? If the Creditors do not object the Court will rule to approve.In this case Her Honor ruled to approve a vote.

The voting date is in the DS as are the provisions for changing it based on the Examiners report.

The passage/or not of the DS will be based on the votes received.The provisions for changing or with holding votes will,in all likelyhood decrease the votes received. That bothered me but Equity has no vote and most of the creditors seem to approve anyway. The passage of the DS is not passage of the POR.

One scenario I have not seen discussed regarding emergence from Chap 11 is the exchange of WMI common and maybe prefered shares(there is a provision for conversion of prefereds to commons based on a BK event), probably on a pro rata basis, for shares in the reconstituted WMI. Shares are essentially free so little if any cost to FDIC/JPM.


Ten