Replies to post #398506 on Mr Cooper Group Inc (COOP)

[bkshadow]

Donot, the 2nd Lien RONS...

AZ

please explain the second lien

I had thought the RONs would be difficult to sell as their full value was not guaranteed by the underlying trusts and the POR said that no other source of asset or income could come to the rescue

please explain the second lien

If I may, the issue with the RONS, as explained in the post referenced below, was that the 2nd Lien RONS had to be split off as they could be considered "contingent on future revenue debt," and therefore make them equity. This was such a "risk" that even the current WMIH BOD, and AAOC and KKR lenders, likely would not "consent" to their sale IN BULK to one buyer. $20M in 2nd Lien RONS (expected to heavily discounted IMO), on an "as if conversion to equity," could result in as much as a 3-4% increase in share at value as a percentage of the MKT CAP of WMIH, however, under multiple date MKT CAPs for averaging (emergence, midpoint and current), that 3-4% could be challenged significantly. IMO, they didn't want to risk the NOLs with so much now on the table; smart advisors, why risk $6B in NOLs by WMIH to help out WMILT on a discounted $20M matter?

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99504300

Also, under the current plan to distribute to the PIERS, WHO would get that distribution still could have been a problem if current 5% or > WMIH holders (i.e., Appaloosa et al) gets a significant piece. They are already a 5%-er, so it would be an automatic increase of a 5%-er. Leaving KKR with the option to control as much as a NEW 42.5%, and knowing the actual PIERS holders and what the aggregate Appaloosa holdings (if they have not changed ownership), they can manage the risk much better.

IMO.