If no deal-Walrath has to deny POR 6+! And NOT for reasons you may think!
I have been thinking about the various facts in our case that have recently propelled Equity into a completely positive direction. Within the last several months we have had the ANICO ruling, the Supreme Court of the United States (Stern) ruling, last week we had JPM saying the bankruptcy court cannot rule on claims because of the Stern ruling and also we now have the WMI Executives who have been cleared of criminal wrong doing. There is much talk of the 300 million dollars in a litigation trust fund for this criminal wrong doing that puts assets far greater than liabilities if it is really not needed. Now that is a very strong paragraph that propels Equity into a SUPERIOR position. Now let me talk about why Walrath will turn this POS POR 6+ down and of course these superior rulings are the real motivators here, but I have a twist as the ULTIMATE reason Walrath will turn this down and it may surprise so read on.
I have always talked about using one’s actions to judge what people will do and with that said remember when Walrath turned down Susman’s appeal on the “fair and reasonable” opinion? This action proved the Judge did NOT want to lose control of this case as many thought she wanted this case out of her court. This was/is ABSOLUTELY wrong and quite to the contrary, as the Judge denied Susman’s request. To make sure it was buried long enough for Walrath to be able to close out the POR with her signature, or at least that was her plans when she issued her opinion on 1/7/2011. Obviously, she ultimately denied the plan but zeroed out Equity at the same time. From 1/7/2011 to present, Equity has been blessed with all of these unexpected and very positive rulings changing the entire course of this case. No doubt, this has made Rosie depressed and deflated at what few options he has left. Staying out of jail, keeping his license to steal and his law business from ruin may be his ULTIMATE driver these days.
Now we know Walrath does NOT want to lose control of this case and think about what happens if she actually approves this POS POR 6+. The case would go to immediate appeal, where this plan would be shredded, made a fool of in law review circles, Walrath’s positive history decimated and the plan would be overturned on appeal within 30-90 days anyway. Put yourself into Walrath’s shoes and THINK how CAN she KEEP control and that is by at least denying the POS POR 6+ if not totally denying the Global Settlement. By denying the plan, Walrath keeps total control to work out an eventual settlement with Equity. All Walrath has to do is tell Rosie to include Equity or she will install a Trustee ensuring some form of settlement before this case leaves her court. By approving this mess Walrath loses TOTAL control and that is NOT what she wants. If Rosie even let’s this case get to her for a decision, he and his people have to be really stupid to allow the Judge to have control that could totally ruin Rosie for his wrong doing. Unless he knows what Walrath will do, the only sensible action would be for Rosie to pull WMI out of the Global Settlement (if JPM/FDIC do not want to play) and issue POR 7 with Equity included. Many more positive developments and larger equity prices coming VERY soon!
