Washington Mutual Preferred fka WAMPQ

[gophilipgo]

We need commons to preserve the "old and cold" NOLs, which are valued at $17 billion. Without them, we'll end up with about $6 billion in NOLs instead (from the WMB stock abandonment).

So what is the justification for the EC to make such a substantial deviation from APR?

If a certain percentage of common is necessary, then that's the percent we'll see, in my opinion. I've read that WAMPQs, because of their convertible-to-commons nature in their prospectus, can qualify as commons to account for that "old and cold", which is why we didn't see 51% of commons owning the company (that is, the WAMPQs satisfied much of that 51%). Whatever the lowest amount that commons can own while preserving the "old and cold" NOLs is what they should get, in my opinion. The rest should go to preferreds.

As it currently stands, between WAMUQs and WAMPQs, "old and cold" will own about 57% of the company.