Dime Bancorp Inc (fka DIMEQ)

[wall_street61]

I was afraid of this. Whenever a complicated issue presents itself to a tired judge, sometimes the outcome is more representative of the 'easy way out' or the complication itself lends to an extraordinary mis-interpretation.

She even got the equity part wrong and interpreted section 4.2(d) as not applicable.

Addressing the equity part first, refer to section 6.1 of the warrant agreement.

"Holders not stockholders." Right there front and center. How can someone screw that up? Stockholders are equity interests. Obviously someone was trying to convey that the LTW holders were not stockholders and therefore not equity interests. What the LTW holders are is plainly stated as holders of rights to 85% of the value of the litigation proceeds. That would be the same 85% that was sold to JPM.

Now addressing 4.2(d). That section says any successor of the litigation would assume the obligations due to the LTW holders.

Now, what is so damn hard to figure out about this? Was not JPM the successor of the litigation via the GSA?

Now 510(b). A narrow interpretation or first impression reading of the statute would lend credence to subordination. The facts of the situation are not anything remotely applicable to the intent of congress when they made the statute. Obviously, someone couldn't get their arms around this. 510(b) was not passed to strip rights from individuals that were derivatives and directly tied to a set value that had nothing to do with the equity of a given company. Which is exactly the reason for the spin-off of the litigation tracking warrants. Can not this judge understand that these warrants were not 'WMI' tracking warrants?

Obviously not.

Now some of you probably think I haven't lost any money here. You would be wrong.