Mr Cooper Group Inc (COOP)

[clawmann]

bond-007: I agree with everything in that post. I believe this judge did as much as she could, within the limits of the law, to preserve something for equity. If I were to lay blame anywhere, it would be on the Board of the DIP (WGM's client and boss) and on the creditors committee (which was dominated by the vulture funds). They were running this show, and the judge was very limited in what she could do, and I think she did the most she could.

People want to blame the judge and WGM because they were the most visible players on the stage. But they did not write the script. They were not - in reality - the central figures in the creation of the obvious strategy of cutting equity out and leaving the creds with slightly less than payment in full (which would have enabled the gifting of the newco to the creds). I think the judge was happy when Nate Thoma stepped up and gave her some legal basis to justify stopping this railroad, and she used it to provide a decent negotiating position to the EC.