I think it will be less than the $ 2.50 - $ 3.00 - about $ 1.20 - $1.70.
According to Page 12 of the POST-TRIAL MEMORANDUM the Court set the claims reserve for the LTW claims at $ 337 M
According to the I-BOX - an 8K filing - which describes the LTW - shows about a 40 % recovery to the LTW Holders of any litigation awards.
$ 337 M x 40 % = $ 134.8 M divided by 112 M O/S = $ 1.20 a share; or
***$ 337 M x 55 % = $ 185.35 M divided by 112 M O/S = $ 1.65 a share
***If the 337 M does not include the 15 % to be paid to WMI then the recovery will increase to 55 %.
According to the 8K filing the taxes to be paid on the litigation awards is 46.05 % - and based on a $ 200 M recovery in damages the 8K states the following:
For example, if we recover $200 million in damages in our litigation and the expenses in the litigation
and LTWs are $26 million, then taxes (using 2003's effective tax rate) are approximately $80 million,
and the resulting adjusted litigation recovery would equal approximately $80 million.
Adjusted
Litigation = 85% X ($200,000,000 - $26,000,000 - $80,127,000) = $79,792,500
Recovery
Our determination of the amounts to be deducted from the amount of damages recovered and the amount of the adjusted litigation recovery will be final, conclusive and binding on the LTW holders.
" Taxes " equal, regardless of the actual amount of taxes imposed with respect to the damages recovery, the product of (i) the amount of damages recovered less the expenses in the litigation and LTW issuance described in the preceding clauses and (ii) the combined highest federal, New York State and New York City income tax rates applicable to financial institutions in the year (or years) in which the amount of the damages (in whole or in part) is fixed or determinable (after taking into account the effect of the deductibility of such taxes for federal and state income tax purposes); for 2003, this combined rate is 46.05%.
