Replies to post #557899 on Mr Cooper Group Inc (COOP)

[Dmdmd2020]

distrojunky,

Yes, IMO...the underwriters will do very well with their $72 million Class 19 claim.

They had more than a year after the Effective Date (March 19, 2012) to settle their $96 million claim which was Stipulated on March 28, 2013.

Not only did the underwriters have all the insider information, but they had the benefit of settling a year after the Effective Date so they can do their final DD on their claims.

IMO...It’s a rigged game, so I’m thankful that the underwriters settled for a $72 million Class 19 claim (which retail are aligned with) instead of the $24 million Class 18 claim.

[mordicai]

If you read the plan only "Preferred Equity Interests " share in the 75% split. These are the P's that were issued and outstanding as of the date of the bankruptcy filing. The underwriters P's (if any) were issued in 2013 and therefore do not participate in the split. My thinking is since the Capital Trust was still in existence the underwriters were issued P's therefrom as a kind of iou from those trust assets only. Hence I see 72 million is the max the underwriters could receive.


1.170 Preferred Equity Interest: An Equity Interest represented by an issued and outstanding share of preferred stock of WMI prior to or on the Petition Date, including, without limitation, those certain (i) Series K Perpetual Non-Cumulative Floating Rate Preferred Stock, (ii) Series R Non-Cumulative Perpetual Convertible Preferred Stock, and (iii) the REIT Series.

23.1 Treatment of Preferred Equity Interests: Commencing on the Effective Date, and subject to the execution and delivery of a release in accordance with the provisions of Section 41.6 of the Plan, each holder of a Preferred Equity Interest, including, without limitation, each holder of a REIT Series, shall be entitled to receive such holder’s Pro Rata Share of seventy-five percent (75%) of (a) subject to the right of election provided in Sections 6.2(b), 7.2(b), 16.1(b)(ii), 1

[brokedaddy]

To pay an underwriter $72 million would indicate the value of what their actually underwriting is much much more. $72 million isn’t for 3-10 billion imo.