"Am I missing something"
You missed Charlotte and the "Totality of the Circumstances"
But you did bring up something interesting tonight... buying a share of WAMUQ ($.061) versus DIMEQ ($.695).
The LTW reserve has already been established at $337 million by the court if as JMW told Art, "If you have a claim".
The debtor wants DIMEQ in class 18 or 21. At this time, even a loss for DIMEQ is not a loss. Here are the givens:
$337 million reserve for DIMEQ
112,975,597 DIMEQ shares
WAMUQ closing price = $.061
$337,000,000/$.061 = 5,524,590,164 shares of WAMUQ common issued to DIMEQ shareholders at today's price. That works out to 48.9 shares of common for each DIMEQ share.
The EC is in a strong position in Mediation. If they don't get what they want, they will press for expanded discovery at the end of Mediation. Expanded discovery of the SNH and expanded discovery of the GSA negotiations. They can drag this out for another year into 2013 and with additional discovery make there IT position stronger. That's why I think Mediation will be successful. Everybody has something to loose, and equity has nothing to loose.
I don't think DIMEQ will end up with WAMUQ common. With 5.5 billion shares they would own 76% of the company. That won't play very well in any reorganization plan. The $337 million carries a lot of weight as equity.
If we go to class 12, that is pretty easy. We get paid!
There is one other outcome. JMW could send the DIMEQ back to Judge Block's Court.
