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boarddork

10/06/16 6:31 PM

#464108 RE: tanjazielman #464105

Howzit Tanj! Thinking about past years of Alvarez & Marsal blending and folding WMI subs (like the 3 Thackeray's, etc.), future WMIH acquisitons/mergers, and the different RMBS, MBS and other ABS - each filing as individual LLCs with individual prospectus'.... Here's an interesting link about Hedge Funds and Series LLC strategies called "Ring Fencing" that a friend pointed out to me.

http://www.sglawyers.com/wp-content/uploads/2015/04/233.pdf?lbisphpreq=1

Definitely what and how things get shuffled. As long as its in our direction eventually....

That's just for the illiquid assets. Then there's all that cash and interest on the side, lol.
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boarddork

10/06/16 6:51 PM

#464109 RE: tanjazielman #464105

Tanja, check out page 4 http://www.sglawyers.com/wp-content/uploads/2015/04/233.pdf?lbisphpreq=1

"Asset Protection

As discussed above, by virtue of its structure as a single legal entity containing a number of individual ring-fenced separate series, the Series LLC offers asset protection and liability segregation though the use of a single LLC entity. The Series LLC also provides flexibility with respect to distributions because a series can make distributions to its members regardless of the financial condition or obligations of other series within the Series LLC, provided that, once such a distribution is made, the liabilities of that series do not exceed the fair value of its assets. Note, however, that Delaware law does appear to allow a distribution that would, in aggregate, render the Series LLC insolvent as long as the distributing series remains solvent.

Historically, if one wished to form a legal structure that would shield multiple assets owned by an organization or entity from the liabilities of other assets or entities within the organization or entity, one would have formed multiple traditional LLCs; each such traditional LLC would have its own member(s), assets, and so forth, and each LLC would be insulated from the other LLCs’ obligations, debts, liabilities, etc."