Rosie's nightmare! July 01, 2011-An exciting date for WMI and Equity!
When this past May 13th was approaching I thought this was an extremely important date for WMI as Susman’s objections were due followed by the Confirmation Hearing on 6/29. I could not see how the criminals could get past May 13th without everything that was hidden for the past almost three years coming to light. I was correct as sit did not happen but more delays due to so called settlement talks. Who knows whether these were really serious or not but my main point is the criminals were able to continue to hide three years of corruption with success. We learned at the last confirmation hearing that Susman was not allowed to show in court what he wanted t due to not advising the court ahead of time, hence PJS’s valuation hand delivered to the criminals this past Friday.
So now we are at a crossroads with Susman’s objections due again on 7/1/2011, which will be even more disastrous for the criminals. This is due to the Horsies being deposed and WMI going to be deposed on 6/30/2011. Is there a settlement before 7/1 or do they let Susman put out for the world to see just how corrupt this mess has been for the past three years? If the criminals past actions are any indication of future results, then this will not happen. Anything could happen to delay the inevitable, but obviously something very positive to Equity WILL happen soon. There are several possibilities that could happen in the next couple of business days such as one or more Horsies pulling out of the Global Settlement which will keep this exciting. IMHO, I feel JPM has thrown the Horsies under the bus which would include Rosie, by forcing them get deposed by not settling to prevent that from happening. I cannot expect them to have protected the criminals, so I am sure they destroyed whatever chance POR 6 had by throwing their former bosses under the bus during these depositions. One would think Rosie would protect him from bankruptcy fraud by withdrawing WMI from the Global Settlement.
Now for the interesting scenarios that could come to light. I think with Susman now having the evidence confirmed of wrongdoing, insider trading, corruption, and more, that this brings great alternatives. One being because WMI is/was solvent, they could prove with PJS’s valuation and BDO’s, they could safely exit chapter 11 as a solvent entity with no equities cancelled. Just resume paying the interest and debt on those securities. I say they could also back this up with an Equity based POR that I think would have to be submitted ahead of the confirmation hearing so the criminals cannot try to pull a fast one on the EC. I feel this could be entered with Susman’s objections on 7/1, 2011 and maybe even closer to the confirmation hearing depending on legalities. Susman could also introduce a “white knight” around this 7/1 date as well. It appears Equity has several VERY POSITIVE alternatives to keep from letting this Judge get a chance to sign Rosie’s POS POR. This next week will be the MOST positive for Equity since this case has been in existence. WMI is one lean, green and growing machine that will be printing BIG MONEY very soon!!!
