Replies to post #118758 on Mr Cooper Group Inc (COOP)

[Sculelos]

It all boils down to Assets and Debt.

If Assets > Debt then the share holders will get paid However if Debt > Assets then the commons and any other stock holders in the company will be wiped out.

Preferred shares are equity and not debt so if any money is left over they will be paid in full and if their is more money left over after that commons will get the remainder.

Thank you, hope that answers your question.

[Dragynn]

Well it's a bankruptcy as you said Linda, that doesn't necessarily mean liquidation, Wamu could emerge from this re-organized, capitalized, and ready to do business again, there would be no need, or point, to paying or buying out shareholders. Your gain would come from an increase in valuation of the common shares you hold.

Wamu is NOT in chapter 7, they filed chapter 11, which is a protective filing, NOT a liquidation filing.

As to why CIT would screw their shareholders like that, you'll have to ask them, somebody needs to.