Replies to post #461532 on Mr Cooper Group Inc fka COOP

[clawmann]

It means exactly what I have already stated.

This is even clearer when you read the paragraph as a whole instead of pulling out bits of language and looking at them in isolation.

DB's claim is going into the class of general unsecured claims, where it will be treated proportionally with other unsecured claims.

The word "diminish" means that the claim will not be reduced. In other words, DB has a $3b allowed claim and that claim will not be diminished to a lesser amount (e.g., $2b). This does not mean the claim will be paid in full.

Nor will DB's claim be subordinated (placed at a lower priority).

The meaning is clear. To me at least. DB is allowed a $3b general unsecured claim. It goes into the class of general unsecured claims along with the claims of the senior note holders. When distributions are made they will be shared proportionally by the members of that class.

Please do me the favor of reading my posts carefully. I have not said that DB's claim will not be paid in full. What I have said is there is nothing in the Settlement Agreement indicating how much will be paid on that claim. However, if DB's claim is to be paid in full, a lot more money is going to have to come into the receivership from somewhere. And I have only read several theories about how that might happen, but at this moment there is no hard evidence to support any such theory.

BTW, the senior note holders are not secured creditors, they are unsecured creditors. They are referred to as "senior" because they are senior to the "subordinated" note holders, who have a priority below the general unsecureds.

[JusticeWillWin]

hotmeat, from your own statement

"The FDIC-Receiver will treat the Trustee Allowed Claim proportionally with all other allowed general unsecured claims and will not subordinate or otherwise diminish the Trustee Allowed Claim. Any and all distributions on account of the Trustee Allowed Claim will be made by the FDIC-Receiver to the Trustee as and when the FDIC-Receiver makes distributions to other general unsecured creditors holding allowed claims in the WMB Receivership Estate"

treat the claim "proportionally" means, the pro rata share with other claims of the same priority is fixed!

From your latest post:

That said, clearly the FDIC signed an agreement stating, the DB claim would be paid in full. That is inherently clear to me from the settlement language..

...should be...

That said, clearly the FDIC signed an agreement stating, the DB claim would be accepted in full. That is inherently clear to me from the settlement language..

...which IS NOT the same.

An accepted claim can receive nothing or only pennies on the dollar!