Follow the bait...It really does lead to GOLD...Credit to the Judge!
I know many people that have read what I have posted in many previous posts over many months may be shocked at what I am ready to say. First I am as adamant as anybody could be with all of this fraud and corruption; however I also understand how large corporations are layered from the bottom to the top. This kind of layering requires much cooperation, understanding, discipline and the ability to let things slide when they should not, all in the name of making it work. Now we know how slim that line is and how it can be exaggerated. In defense of the Judge (shocked yet), there is no doubt in my mind this Judge has been threatened, talked to, threatened again and many other devious and criminal ways to get her to side with the criminals, even though she is part of the whole scheme by employment. Keep in mind by giving the criminals everything (almost), she has gained many accolades and pleased many people and constituencies.
Now with my understanding of the position the Judge is in, she (I believe) wittingly left us bait to get what we wanted. I WILL give the Judge credit for this bait as I CERTAINLY know she did not have to leave us this trail of bait. First, in her opinion we all thought was horrendous, she discussed Mr. Thoma and his insider trading allegations a couple of times, leaving Susman some bait with powerful consequences. The Judge certainly did not have to do that especially when she ignored Ilene’s wonderful testimony on Rosie’s gerrymandering the voting process. Then the Judge (albeit on pages 97-99) left some more bait in her opinion about the NOL’s having some value, even though she zeroed equity out on everything else. She also left Susman (IMHO most valuable) a little nugget suggesting the reorganized company will need to be valued and herein is the prize. Remember, Rosie did NOT want the WaMu Bank stock ruling about abandonment as he moved that off the docket because if the Judge ruled on the abandonment, there would have been tremendous value. We all know Rosie is not trying to value this (about 26 billion), undervalue or wait until post confirmation to go with the abandonment then realizing this tremendous value. There is about a total of 32 billion in tax advantages in one form or another.
With this trail of clues and bait, the Judge knows Susman will not let Rosie get away with this, forcing Rosie’s hand. So how does Rosie get away with undervaluing the tax advantages and the answer is, he does NOT. This is where the true valuation will come in. The whole Estate may or may not get valued but the main fact is there will be a lot of money for preferred, if nothing else Even if they only value ALL of the tax advantages at only five billion dollars, equity will be in the money. It will be up to Susman to make sure the waterfall goes to commons and I have no doubts it will especially when people start squealing to save their own skin. Yes, Yes and Yes, I gave the Judge some credit. Most of all, we WILL GET PAID and on this, I HAVE NO DOUBTS!
