Dime Bancorp Inc (fka DIMEQ)

[NASCOW]

Someone better throw down a gauntlet

(b) The Argument that the Settlement Should Not Preclude Litigation in the Court of Claims as to Who Owned the Anchor Litigation.
The Settlement resolves issues relating to the Adversary Proceeding, which dealt exclusively with whether the LTW holders had claims against, or equity interests in, the Debtors. Except for the issues relating to the WMI directors’ obligations under Section 4.4 of the Amended Agreements, the Adversary Proceeding did not deal with claims against third parties.Issues relating to third party releases of third party claims are part of the Seventh Amended Plan. In order to get a distribution under the Seventh Amended Plan, LTW holders } 6 will need to timely make an election which, if given, would release claims against certain third parties, including JPMC. However, that is strictly their option to do so, or not.
The issue as to who owned the Anchor Litigation was clearly raised in the Adversary Proceeding. The Trial Opinion states at page 31 that “the LTWs do not entitle the LTW holders to an interest in the Anchor Litigation itself.” The Global Settlement Agreement states that the Anchor Litigation is being transferred to JPMC free and clear of all claims and interests of LTW holders. It appears that the objectors to the Settlement would like to make the argument that this Court did not have subject matter jurisdiction to decide these issues because no part of the Anchor Litigation recovery was ever owned by the Debtors, and the issue should have been litigated, and still should be determined, in another forum. It is not clear whether the objectors are asking the Court to invalidate its prior rulings, or they are just throwing down a “marker” so they can litigate the issue somewhere else. If the latter (throwing down a “marker”), that is not an objection to the Settlement. If the former (invalidating prior rulings) they have not made that type of motion, or specifically requested that type of relief.

Class Representatives' Reply to Objections to Motion for Approval of Settlement Resolving Adversary Proceeding Between Debtors and Class Representatives for the LTW Holders

http://www.kccllc.net/documents/0812229/0812229120130000000000001.pdf