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bkshadow

06/30/15 3:42 PM

#427209 RE: tcr7309 #427200

tcr7309, why is this a "surprise" since...

...it has been disclosed in 10K's and/or 10Q's of WMILT and/or WMIH?

...the only difference is the $3M reserve account brought the amount "currently" to WMIH down a bit from the 10K's and/or 10Q's.

WMIH – 10Q 2015

In connection with the D&O Litigation, on December 1, 2014, the Trust filed its Motion for an Order, Pursuant to Sections 105(a) and 362 of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure, (A) Approving Settlement Agreement Between WMI Liquidating Trust, Certain Directors and Officer and Insurers and (B) Authorizing and Directing the Consummation Thereof (as amended, modified or supplemented prior to the date hereof, the (“D&O Settlement Motion”). Among other things, the D&O Settlement Motion sought approval of a settlement among the Trust, certain former directors and officers of WMI and certain insurance carriers that underwrote director and officer liability insurance policies for the benefit of WMI and its affiliates (including such former directors and officers). At a hearing held on December 23, 2014, the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) granted the Trust’s D&O Settlement Motion. On January 5, 2015, certain non-settling officers appealed the Bankruptcy Court’s order granting the D&O Settlement Motion and, as a result, such settlement has not yet been consummated. If the Bankruptcy Court’s order is affirmed on appeal, then such settlement will, among other things, result in a payment by such insurance carriers to the Trust of $37.0 million. It is expected that such payment will constitute Litigation Proceeds (as described above). In its Quarterly Summary Report for the period ended December 31, 2014, a copy of which was filed by the Trust under Form 8-K on or about January 30, 2015, the Trust estimated that WMIHC would be entitled to receive approximately $9.0 million out of the $37.0 million. The foregoing notwithstanding, this litigation is managed and controlled by the Trust and WMIHC is not involved in the D&O Litigation. Unless and until the Bankruptcy Court’s order approving the D&O Settlement Order is affirmed and such settlement is consummated, there can be no assurance that WMIHC will recover any amounts on account of the D&O Litigation.

As set forth in the Plan, to the extent any electing creditor of the Debtors received common stock of Reorganized WMI pursuant to a Reorganized Common Stock Election (as defined in the Plan), such creditor’s share of the Runoff Notes to which the election was effective (i.e., one dollar ($1.00) of original principal amount of Runoff Notes for each share of common stock of Reorganized WMI) were not issued. As a result, each creditor making such an election conveyed, and Reorganized WMI retained an economic interest in, the Litigation Proceeds (and such proceeds do not constitute part of the Liquidating Trust Assets) equal to, fifty percent (50%) of the Litigation Proceeds such creditor (solely in its capacity as the holder of the Allowed Claim to which the Reorganized Common Stock Election was effective) otherwise would have received. However, each creditor’s LTIs would be reduced by the Litigation Proceeds it would have received had it not been retained by Reorganized WMI. “Litigation Proceeds” is defined in the Plan, in relevant part, as the recoveries, net of related legal fees and other expenses, of the Trust on account of causes of action against third parties. Based on a recovery of $37.0 million from the Insurers prior to Tranche 4 being paid in full, Reorganized WMI would receive $9.1 million and the Trust would receive $27.9 million. After distribution to LTI holders, total LTIs would be reduced by $37.0 million. If the $37.0 million were to become subject to any offsets or reductions, or if the funds were received after Tranche 4 was paid in full, the Trust would re-calculate the amount to which Reorganized WMI is entitled.

As previously stated, the valuation of assets requires management to make difficult estimates and judgments with respect to such valuations. Management has engaged an independent valuation firm to make valuation estimates for select assets. Considering certain risks associated with the objecting claimants’ pending appeal, such independent valuation firm has estimated a valuation range of between $34.0 million and $37.0 million (or between $25.9 million and $27.9 million after giving effect to the amount that is payable to Reorganized WMI, as described above). Nevertheless, the Trust believes the aforementioned risks are remote and, on that basis, has recorded $27.9 million as the net realizable value for the amount to be received from the Insurers as of December 31, 2014. Prior to reaching a settlement, the Trust had recorded a value of $0 as of December 31, 2013 and 2012.



It appears that the math on the allocation of the "litigation proceeds" was (1) not 50% of the 5% holdings of the subscription rights / RONS players; rather (2) 50% of those players rights to such proceeds towards "all claims" they held unsettled (an the tranche is unsettled). Since it is almost 25%, that would mean that the "settling parties" that "subscribed" had approximately 50% of the remaining creditor claims.

Nice little surprise for WMIH.

Donotunderstand

07/01/15 12:04 PM

#427305 RE: tcr7309 #427200

tcr

for us and individuals that is nice coin

for WMIH not really

remember sitting on the NPV - cash - of protection of 5.9B of profit from corporate taxes

Billions