Mordicai
WMI's motion to disband the EC is not good at all. They say that:
"............The holding company’s latest operating report shows liabilities in excess of $1.3 billion over its assets, and preferred stockholders — who are paid before common stockholders in a bankruptcy case — are owed about $3.4 billion. Therefore, common shareholders would have to “overcome an approximately $4.7 billion to $8.7 billion deficit before receiving any money,” according to the complaint. That estimate also includes legal fees.
“Even in the best case scenario for the debtors, the debtors do not believe this deficit will be overcome,” the motion states.
........"
I still do not understand what they are trying to do? Do they really believe that there won't be anything left for commons or they have to say it this way. But then how did they find that $8.7B deficit (upper limit). And when they say that "in the best case scenraio they do not believe that the deficit will be overcome".?????!?!?
What kind of argument is that? Now, how could someone talk like this and at the same time try to get huge settlement numbers from JPM (like some were caliming 3Xdamages $24pps?!?!?!)
I am getting all confused on this EC issue!
Thanks
Best
Climber
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