Replies to post #573948 on Mr Cooper Group Inc (COOP)

[RajuSondh1]

LG - FDIC responded that escrows are related to receivership - they never mentioned Bankruptcy in their response.. based on FDIC response bankruptcy and receivership are independent processes.

[jerrylev]

People will hate to hear the following but it is what it is.

The bankruptcy was done literally in 2012. There is a bankruptcy court which decided POR 7 and it was final and there is no more final payment. Nevertheless, the bankruptcy decision is still carried out with the last creditor (PIERS) paid in 2019 and the waterfall is still worked on and escrow will be last to be paid with what is left and the liquidation trust will close down in 2021 and that will be the end on the Estate side.

On the FDIC side, it goes by receivership and not bankruptcy waterfall. So the priority of the FDIC is to pay the bank depositors first which is none in our case because JPM took over the bank. Then the creditors will be next and this is none because WMILT takes care and pay them all. Next come the bondholders and what is left will go to the shareholders or escrow.

The LIBOR settlement is a special case because it does not come from the Estate but it is a criminal lawsuit brought by the DOJ on behalf of 39 failed banks and so the FDIC will pay however it wants and also depending on the proof of claims of each party.

This will last until 2024 and the FDIC will pay to the parties in its receivership. The FDIC can pay a lot or all to escrow. or pay most to bondholders and very little to escrow. It is their decision.