So how do you explain the $20.8Billion retained earnings asset that was transferred to the WMILT from the Debtors in the 2012 MOR?
What did that unrealized asset represent to the LT or maybe it was simply another misunderstanding of the document.
WMI owned Participating Interests in MBS's and these would have remained Debtor property, albeit isolated in Safe Harbor .
Now that the Debtors are gone who's next in the line of succession of ownership and receipt of these assets?
The bottom line is that Commons stock was extinguished just as were Preferred stock so the idea that Commons "own the estate" is ludicrous.
Any distribution of Safe Harbor assets will follow the only valid guiding documents available ie the POR, not former priority rules for equity.
Whether those assets return via the WMILT or the FDIC is irrelevant since they both are governed by the agreements in the POR.
SH assets ARE NOT protected from bankruptcy procedures based on the WAMU FASB letter and SFAS 140 as applicable in 2008.
It couldn't be any clearer..........
Quote: "4. Cancellation of Existing Securities and Agreements............WAMU GSA pdf 361
Except as provided in the Seventh Amended Plan, any document, agreement, or instrument evidencing any Claim or Equity Interest shall be deemed automatically cancelled and terminated on the Effective Date without further act or action under any applicable agreement, law, regulation, order, or rule and any and all obligations or liabilities of the Debtors under such documents, agreements, or instruments evidencing such Claims and Equity Interests shall be discharged; provided, however, that the foregoing cancellation of securities, documents, agreements or instruments shall not apply to (a) the securities related to the WMB Senior Notes or the WMB Subordinated Notes and (b) any security, document, agreement or instrument related to a Disputed Claim until a Final Order resolving any such Disputed Claim is entered;"
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