This is how I see it from the relevant sections of the LTA and POR. All payments as of the effective date and after are governed by Article XXXI of the POR and Annex C of the LTA. Annex C states clearly that once all other senior Tranches are paid, Tranche 6 will split the assets 75%/25% (Prefs/Commons). Now the guidance for distributions to LTI's that were not allowed claims as of the effective date (Not PIERS) is Article XXXI.
What does it say??? It states again that once senior claims are paid in full + interest, the LTI's WILL be redistributed to Pref's and Commons according to the 75%/25% split. No payments can be made to Tranche 6 without all other senior tranches being satisfied first. Once this is completed, the LTI's will then automatically move down to us, ensuring that all LT Assets are apportioned as per the agreement. I've posted the relevant sections from both docs below....
From the LTA......pg 11
(b) Payment of Distributions. Subject to Section 4.2, each Liquidating Trust Beneficiary’s share of the Liquidating Trust Interests as determined pursuant to the Plan (including any Cash
to be received on account of any Liquidating Trust Interests) shall be allocated and distributed, and the Liquidating Trust Assets shall be allocated and distributed, in accordance with Article XXXI of the Plan and Annex C hereto.
From LTA......
"Annex C to the Agreement was revised to clarify that holders of Preferred Equity Interests and Common Equity Interests will be issued Liquidating Trust Interests in Tranche 6 on account of those interests when Tranche 2 through Tranche 5 Liquidating Trust Interests have been satisfied in full, and that the distribution to Tranche 6 will be shared 75% and 25% pro rata between claims on account of Preferred Equity Interests and Common Equity Interests, respectively."
From LTA......pg 13
4.7 Distributions After the Effective Date. Distributions made after the Effective Date to holders of Liquidating Trust Interests on account of Claims that are not Allowed Claims as of the Effective Date, but which later become Allowed Claims, shall be deemed to have been made in accordance with the terms and provisions of Article XXXI of the Plan.
From Article XXXI of the POR.....pg 74
(b) Allocation of Liquidating Trust Interests. Within ten (10) Business Days after creation of the Liquidating Trust, the Disbursing Agent shall allocate, or cause to be allocated, (i) to the Liquidating Trustee on behalf of holders of Disputed Claims, (ii) to each holder of an Allowed Senior Notes Claim, an Allowed Senior Subordinated Notes Claim, an Allowed General Unsecured Claim, an Allowed CCB-1 Guarantees Claim, an Allowed CCB-2
Guarantees Claim, an Allowed PIERS Claim, an Allowed Late-Filed Claim, an Allowed WMB Senior Notes Claim, and Post-petition Interest Claims in respect of the foregoing, and (iii) to each
Accepting Non-Filing WMB Senior Note Holder, such holder’s share, if any, of Liquidating Trust Interests, as determined pursuant to Article VI, Article VII, Article VIII, Article XVI, Article XVIII, Article XIX, and Article XX hereof. In addition, in the event that all Allowed Claims and Post-petition Interest Claims are paid in full, the Liquidating Trust Interests shall be redistributed to holders of Subordinated Claims and, after such Allowed Claims and Post-petition Interest Claims are paid in full, holders of Preferred Equity Interests, Dime Warrants and Common Equity Interests as set forth in Sections 23.1, 24.1 and 25.1 of the Plan.
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