I think this is one reasons for an equity committee, to have equity sign off from further lawsuits after an agreement is reached. But at the same time, the shareholders that were damaged (destroyed) are the preseizure ones. They may not be willing to sign anything unless signed with JD's blood.
The value that WMI's lawyers have listed for common equity on the MOR is about $ 7.65 a share.
Even if WMI is awarded a total of 50 billion by the end of all the lawsuits - will WMI be liable for more than the listed $ 7.65 a share on the MOR if they do not convert to a Chapter 7 liquidation?
I am just looking at the facts and figures that we have now - not what may be in the future.
If WMI reorganizes and emerges from bankruptcy will they be obligated under law to pay more than the $ 7.65 a share to the commons?
At the end of the day will the common shareholders - if they so wish - have to argue in court against WMI for a higher restitution than the $ 7.65 a share?
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