Too many revisions, there is really more to it, I have to get back to work
Here is a very interesting theory in which why Rosie included a clause (in
one of the recent pleadings) in which DIMEQ to be in Class 18. It was initially because DIMEQ was going to be Class 12 OR Class 22 ONLY (cant remember which Class was directly above commons).
Rosie still intends to screw DIMEQ and here is how.
Under a settlement, H's is where the distribution stops (Absolute Priority). Now if Rosie is successful in putting DIMEQ in Class 18 (under H), the distribution does not reach there (below H) anyways because of the burn rate on the estate and no funds to distribute, then DIMEQ is still unpaid.
Now, under this settlement, it is, as we all presume, the SNHs are the ones giving up THEIR money (Absolute Priority) to equity, not the Estates. So in this scenario, all classes get paid except DIMEQ because distribution stops at H's and SNH give up "whatever" to equity.
If Dimeq were to be in Class 22, then I assume commons get less from settlement, BUT EC wants more to compensate their dilution. This is where mediation parties are waiting on a DIMEQ ruling to see how more has to come from SHNs, ie $337 million.
In other words, Rosie wants DIMEQ to be in Class 18, below H where distribution does not even reach. If not 18, then Class 22.
In the end, DIMEQ might end up with "nuisance" money if in Class 18. If in Class 22, with commons. I doubt, class 12. Rosie is trying to subordinate.
IMO, speculators might think Class 18 is a win, but if you look at the totality of circumstance, it may not be a true win if distribution stops at H's. Class 12 would be a true win, imo.
I must say, Rosie is very crafty and a genius, we (as equity) are just on opposite sides.
Strictly a thought and speculation.
