Mr Cooper Group Inc (COOP)

[Lawrence 147]

Payment for the commons.

There will be no payment for the commons under a chapter 11 period. It just does not work that way. Under the chapter 11 the company would continue to operate and should the commons survive they will continue to trade at market value. If the company needs to re-capitalize they would either reverse split the commons or issue new shares and they would trade wherever the market sets their value.
For the commons to be paid this would need to be a chapter 7 and the company liquidated or sold. If they sell the company it is doubtful the NOL value would be nearly as high unless the original shares are part of the sale. That is the only way the commons will be paid out of the bankruptcy.

The preferred shares may be paid or the back interest paid and continue to trade that would be for the new plan of reorganization to decide if they wanted to continue the preferred or pay them off and reissue them for a more favorable terms to the company.

The simple fact is for the company to continue and any of the equities to have value they must survive and continue to trade. That is why it is imperative for the estate to garner as much value as is possible and not give away any property of the estate.