Replies to post #701849 on Fannie Mae-No Politics (FNMA)

[Brooge warrants cancelled]

when was that Glen?


were you in diapers?

[Louie_Louie]

Why would they need to re-org when they build capital just fine from quarter to quarter? You fail to acknowledge this constantly.

This is also never been advertised as a chapter 11, other than a Calbria off the cuff remark like his cucumber poop comments, so why would this be a chap11?

[JOoa0ky]

I don't disagree with the conversion... but bro you really gotta swap out of those low interest ones and get into the higher interest ones.

I would say that all of the JPS most likely will receive a haircut... some will walk out with a mick jagger length one...others will get a crew cut... and then some of the unfortunate ones will come out looking like a shaolin monk.

i expect preferred to convert to common as part of the equity restructuring to clear the capital structure, settle the lawsuits, and to raise new money

hope that helps.

as to how?

junior preferred can vote to amend the terms of their share certificates as part of settlement/restructuring negotiations

just because they are not currently convertible does not mean they will always not be convertible.

this is an equity reorganization.. have you ever been part of a chapter 11 reorganization (ch. 11 means debt+equity usually) before?


chapter 11's usually go something like this:
debt converts to equity --- if equity is not entirely wiped out, preferred usually converts to junior equity then as well, and common tends to get massively diluted or wiped clean.

anyway, i've been through reorganizations before where i have owned preferred that convert to common, so this isn't my first rodeo