Simple Question:
I was reading up on different classes in teh POR #6 trying to keep up on the DIMEQ saga (Art's response to Rosen should be out tonight) which are always a good read. Not Old Man and the Sea good but better than Twilightand good for this legal stuff.
So I got to the WAMU Piers (class 19) and reading it surprised me as I completely forgot about it.
Do I have this right? The settlement for the REITS is $50M out of a FV of $4B? This would imply a recovery of 2%. I also have in my notes that if in the case of a payout it would be revised to be Pari-passu with the preferreds. Do I have this right?
So let me ask this a different way? FV for preferreds is $3.5B. If they were to settle on 10% that would be a payout for P's of $100/share. This would be $350M that they would have to "find".
My understanding that while in mediation the absolute priority rule nor the settlement with the REITs absolutely have to be followed and applied but but lets say it did. That mean that the REIT holders would get 10% of their claim or $400M which means that in reality they would have to find, clawback, etc $750M just to get 10% to preferreds. 20% - $750M more and on and on.
Now I realize that in mediation it all gets thrown out, but I doubt REITS would walk away with 2% while preferreds get 10 or 20%.
Right, wrong, crazy?
