I watched every step that led to the variance. Our EC was conflicted. It had significant commons and pref holders on it. In order to get the EC to go along with a negotiated deal, the EC needed to give something to commons or there would be no reason for commons to vote in favor and give the needed releases. It cannot be overstated how critical the execution of the releases was to getting the POR confirmed. At first commons wanted a 70/30 split but discussions led to the agreed 75/25 split. The variance from absolute priority was agreed to give commons a reason to vote for the POR and execute the releases.
This meant that at least commons would get shares in WMIH, and a share of any funds left over in the LT after senior classes are paid off.
There is no evidence, only pure speculation, supporting the theory that the variance was agreed to because the parties who negotiated it were aware that there would be a very large future cash payoff to equity.
Note: I really want there to be a lot of money flowing in. But that desire does not mean that I have to accept errant nonsense on this board.
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