Washington Mutual WAHUQ Trust Prf (fka WAHUQ)

[marayatano]

The short answer:

All debt will recover principal and interest in the form of FJR: FACT (Court Opinion)

Subordination from junior creditors to senior creditors of deficit: FACT (Court Opinion and HUQ/junior sub bond prospectus)

The variable here is: seniors must cause an act to recover the deficit from junior. This is not a fact that they will, however, more likely than not, the seniors will pursue because it is the obligation of the senior bonds trustee to do so.

That is the reason why both seniors and juniors price adjustment by the market to reflect FJR, which is the max from Bk estate. The variable kicks in if the Trustee pursues (after effective date of BK confirmation).

This is just my opinion.

Thanks. Good day.