Replies to post #529004 on Mr Cooper Group Inc fka COOP

[hotmeat]

Quote: "The transferred financial assets have been isolated from the transferor-put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership. Transferred financial assets are isolated in bankruptcy or other receivership only if the available evidence provides reasonable assurance that the transferred financial assets would be beyond the reach of the powers of a bankruptcy trustee or other receiver for the transferor or any consolidated affiliate of the transferor that is not a special-purpose corporation or other entity designed to make remote the possibility that it would enter bankruptcy or other receivership (bankruptcy-remote entity) (paragraphs 9(d), 9(e), 27, 27 A, 27B, 28, and 83(c))."


Transferor:- WMI

Consolidated affiliate of the Transferor:- WMIIC



What the above demonstrates is that even non-bankruptcy remote entities such as WMI could own assets that would qualify for Safe Harbor/Legal Isolation.

So for example if WMI had transferred qualified assets to WMIIC, those assets could be afforded Safe Harbor protections even though WMIIC was not and SPE or bankruptcy remote.

My statement was not meant to be taken literally but rather to show the claims that SH assets are totally isolated from a bankruptcy and the WMILT are not 100% true.

In WMI's case I believe it's SH assets were isolated from our Creditors and FDIC seizure and sale.

Those assets are still there and will be returned to WMI's successor, the WMILT, once outstanding issues are resolved.

Any SH assets returned to the LT will be liquidated and distributed to those who released via issued LTI's.

If same assets are distributed directly from the FDIC to our Markers, the same POR ratio will apply...75%/25%.

[jerrylev]

When we use the word "protected", it only means protected from seizure and from the creditors. Otherwise, those assets are under the jurisdiction of the bankruptcy court to give it back to the Estate. Now there are two options: The Estate can get transferred to the reorganized company which is not what the court had decided in the WAMU case, or they will be liquidated and the proceed given back to shareholders, and in our case only to shareholders who signed release and not to any shareholders.

So there are assets from the Estate to be liquidated and we don't know if it SH or just WMI assets, but who cares? They will be all liquidated eventually and the proceed returned to shareholders who signed release.

That is pretty simple and clear cut. At this point, it is not important to distinguish if an asset is SH or securitized or not bceause they will be all sold. The only thing to consider is if an asset was SH or belonging to WMI then it cannot be seized and sold for cheap for 1.9B or petty cash to JPM in 2008. That is our biggest fear.

And JPM and FDIC were surprised in 2008 too that after the seizure, they thought that they got it all to gift to JPM only to find out that many assets were SH or securitized and have to be bought later at market price. That's the biggest joke of all.