Replies to post #20720 on Washington Mutual Preferred fka WAMPQ

[steved_45]

DR, why would you say preferreds are in the money? This was just a proposed plan from the debtors. Now, this makes me feel better knowing that the debtors are trying to pay something to the preferreds even though we've been told that the debtors want to wipe out equity (and preferreds to my understanding) claiming WaMu was insolvent.

Question to all: How much would these distributions of trust interests be valued at?

Here is what Dr was referring to when he said preferreds are in the money:

"The debtors asserted in their Motion to Disband that they were insolvent and the Committee had no economic interest in these Chapter 11 cases."2


2"Curiously this assertion is contrary to the debtor's own plan of reorganization dated March 26, 2010, which provides for the distribution of liquidating trust interests to preferred equity holders."

All responses appreciated

Steve

[etzetrade]

Dr.

Need your assistance and comments. Are we going to have a similar case as Cit. What Cit did was to wipe out entire commons per POR, and took 60 days to come out CVR to determine the value of pref. If CVR is more than pre-determined value, then pref gets something. Otherwise, pref is going to be wiped out too.