Mr Cooper Group Inc (COOP)

[WithCatz]

Here's the other gotcha.

As I understand it, once bankruptcy petition is filed, a company may not use their "authorized but unissued" shares. That is to avoid lots of other messy problems, including jeopardizing NOLs, diluting further shares of bankruptcy security holders, and biggest of which -- creating a fraudulent conveyance post-petition, etc.

If I understand things right -- DimeQ's don't get WAMUQ's and then Convert to NewCo shares. EG: DimeQ's + WamuQ's (at some ratio within the 30% allocated to commons) convert separately into NewCo shares at the time of conversion. But the net total of both cannot exceed the 30% of NewCo shares.

In other words, the net amount of ISSUED WamuQ's can't change. And the 30%, now to WamuQ's + DimeQ's is shared between them - the ratio of which isn't clear, or defined, or whatever.