Washington Mutual Preferred fka WAMPQ

[marayatano]

Here is my other theory on the cover of shorts through DIMEQ:

There is no way to convert DIMEQ to commons because you cannot execute a "warrant" for new shares while in BK, plus, with the ownership restriction in place by the court in favor of NOLs, there is no way to convert to commons without upsetting the 5% (%4.x) change of ownership rule inposed by the IRS to maintain NOL carry forwards.

How does Rosie get around diluting commons (Assuming class 22)? He will use a ratio of conversion of old securities (DIMEQ, Commons, and preferreds, TPS w/ their own ratios, some better than the other, but preferreds are equal)) to new commons securities. So, IMO, you can't use DIMEQ to convert to commons to cover any shorts in WAMUQ.

Rosie accomplishes the same thing, but just took a different avenue.

When he brought up the Class 18, is what got me thinking about it. One does NOT propose something without an intent.

My opinion of course.

He is a 'crafty' one. Even if all parties we're to settle, they could cover the 40 mil SHORT wth a 1.5 million purchase of DIMEQ. It's why I bought DIMEQ a long time ago...This class 18 stuff has me looking at it strangely, but I think DIMEQ would just appeal that to a higher court. 12 or equity. All of a sudden Rosie says 18?!? Serious jail time for a lot of peeps is in order over the BK and the court BS.
Even a decent settlement wouldn't be true justice IMO...