Dime Bancorp Inc (fka DIMEQ)

[marayatano]

Here is a Bopfan post (approx. 12:15 PST/3:15 EST, November 30, 2011) for all you fans out there:

The thing to keep in mind is that Judge Walrath's role is that of claims adjudicator. That said, the DIMEQ claimants have asserted a claim against the debtors which will be assessed for its validity as a legal matter. The claim can only be based on (1) contract (express or implied) or (2) tort. In the case of (1) the debtors would have had to have a contractual obligation (with all the elements of contract satisfied and no defenses). In the case of (2) the debtors will have had to have become liable to the DIMEQ claimants under a tort theory (i.e., the debtors did something wrong and have to compensate the claimants for that wrong).

Like many of you I have enjoyed Art Steinberg's court performances, though I have not been following the DIMEQ matter closely. Now that I have focused on it, however, my view is that Art must show that his clients have a valid claim under (1) or (2) or he is out of luck. It is my conjecture that mediation was delayed as a signal to Judge Walrath that the mediating parties want/need a resolution on DIMEQ to complete their negotiations, and I expect that she will accommodate them, otherwise we can expect another mediation delay.

I further conjecture that Steinberg's clients were offered some amount but that it was unsatisfactory and they decided to go for all or nothing.

That 'nothing' is a very real possibility, because if there is no valid tort or contract claim that's precisely what the DIMEQ interests will get. Simply stated, it isn't whether DIMEQs are properly characterized as debt or equity, but whether they are entitled to ANY priority in the WMI estate (i.e., WMI has any obligation to them whatsoever). If the DIMEQs have no valid claim, a contingent $337MM liability is removed from the waterfall.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=me&bn=86316&tid=883251&mid=883251&tof=1&frt=1#883251

Please direct all your responses to her, I am just the messenger and have no opinion. Also keep in mind that she says ". . . though I have not been following the DIMEQ matter closely . . . "