Replies to post #719082 on Mr Cooper Group Inc (COOP)

[lodas]

boris?..... here are a few things to consider while you are waiting for HLCE:...........
(1) the Feb 2102 MOR shows (-20.7 billion dollars) in Shareholders Retained Earnings as a Loss as submitted to the BK court
(2} Rosen states in the MFAQ that WMI held no Safe Harbor , or off balance sheet assets
(3) WMI states in the chapter 11 closing document that the common, and preferred shares were cancelled and extinguished and all obligations of the prospectus are null and void..
( 4)..75/25 refers to the ratio split of new shares given to equity and preferred by the WMIL-T only, and not related to post bankruptcy settlements, if any..
(5) WMI states in the FAQ that they are aware that certain posters are exploiting assets returning after release signatures were signed, and that this expectation is false, and that WMI was finished with claims settlements both with Creditors and equity holders//

(6) there is no mention of a Trust holding pre chapter 11 assets of 20 billion dollars that is gaining interest and will be paid back to the old estate
(7) in the 2013 WMIH 10-K, WMIH says there are no Trusts held off balance except for WMMRC which has about 34 MILLION in Trust...

please substantiate your assertion that WMI has placed Retained Earnings in any T-Bill, Trust, or other venue that is accruing interest, and that it will return to equity in the ratio of 75/25, when the official documents as supplied by WMI, WMIH says differently.... TIA.... Lodas

[ron_66271]

That Depends on the Interest Rate.

I don’t believe it is that high yet.

Then did the discussion start at referencing the $25 Billion?
?Six years, eight years after the plan as implemented?

RE = $20.78 Billion.
T = time in years.
R = interest Rate expressed as a decimal.
DCR1 = $25 Billion, said value from discussions.
DCR2= new DCR value.

The formula;
DCR1= RE(1+R*T)

Now solve for R.
R = 1/T(DCR1/RE-1)

With a different interest Rate calculation based on a different time span.

Example;
If the $25 Billion discussion stated six years after plan implementation (early 2012), then DCR2 becomes $26+ Billion at R = 2.54%.

Eight years;
DCR2 = $28.5 Billion, R = 3.34%

The interest rate looks high to me for the time period of 2018-2020, but Rosen did say that ‘they got a good deal’.



Ron