Dime Bancorp Inc (fka DIMEQ)

[bullwinkle99]

How are you folks calculating the potential payout? Both the warrant agreement and the debtors (in 6th DS) state the following:

Adj Litigation Recovery = 85% * (Amount Recovered - Litigation cost - Listing cost - Taxes)

where Taxes = Tax Rate * (Amount Recovered - Litigation cost - Listing cost)

Assuming the Amount Recovered = $419M (= 356+63) and calculating this way gets to an ALR of $183.9, or $1.63 per warrant.

BUT, every estimate of fair value I've ever seen on this board (and I've read a few hundred posts now), pegs the value at at least $2/warrant. PLEASE EXPLAIN WHY.

My only guess is that you guys are applying a "Grossup for tax" to the original court award (I got the term in quotes directly from Rodney McFadden's 5/16/10 writeup). BUT WHY SHOULD WE ASSUME THIS? There is no mention of a gross-up in either the warrant agreement or any of the court filings. Is this some kind of standard procedure that is just assumed to happen? If so, why why why?

Sorry for the ranting but I've nearly gone blind trying to find anything that explains how these warrants are worth $2+ each