Yes you are correct.It was Akin's lawyer.
Now, let's look at the rest of the context of what's
10 in the demonstratives. As I said before, we are showing the
11 preferred equity at the bottom and the common equity below
12 that. But there's this big cloud in the middle, and I've
13 represented it as an orange cloud, and it's a cloud because it
14 has fuzzy edges. There's a lot there that is still uncertain
15 today. There are unliquidated claims. There are also claims
16 of creditors that are to be subordinated under Section 510(b)
17 of the Bankruptcy Code. And of these creditors that are to be
18 subordinated, for some of them we have stipulations as to
19 subordination, but we still don't have a stipulated or
20 determined amount. So some of the things that are going into
21 this group are identified over on the right in the orange
22 section. They're litigated claims.
23 There's also a huge amount of securities fraud
24 plaintiffs, and some of these claims are very large. The MARTA
25 claim alone has a stated proof-of-claim amount in excess of
1 thirty-nine billion dollars. Now, the debtors have been
2 working with MARTA with respect to a stipulation regarding
3 510(b), but it's an unliquidated claim and it could be very,
4 very large.
5 We also have Tranquility and Principal Financial,
6 which are some large claims that have been the subject of some
7 litigation and contested claim procedures. And Tranquility --
8 the amount in question I think is now going to be around forty9 nine million, but that's -- it's an arranged -- it's in
10 negotiation; I'm not sure where it's going to end up.
11 The underwriters' claims, this is underwriters'
12 indemnities claims with respect to underwriters' indemnity for
13 bond issuances. And so we contend that their claims should be
14 subordinated under 510(b), but we know that the range of what
15 they're looking for at this point is between ten and thirteen
16 million.
And then of course there are the WMB bondholders, and
18 they're in a separate class altogether because they have their
19 own vehicle to seek their own recovery through the WMB
20 receivership. But this is the claim that they have made
21 against the WMI estate. And here too we contend that those
22 claims should be subordinated under 510(b), but of course
23 they're undetermined at this point
So the context that I'm trying to illustrate here,
25 Your Honor, is that there's a very large and undetermined cloud
1 at this time in between the funded debt, the general unsecured
2 creditors at the top of the capital structure, and the
3 preferred equity and the common at the bottom.
Question now is WMB bondholders got paid yet?.As per latest FDIC balance sheet,no they were not paid.
Can the equity get paid before WMB bond holders?.I don't think so.
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