Dragon -- I don't think they let this go to chapter 7 with so many questions still unanswered about assets that will still need to be resolved, so chapter 7 may not actually be any faster and if numbers are like many of us believe, equity will still be in the money no matter the proceedings.
You are very wrong here. THJMW has only allowed the WMB bondholders to stay in BK court, because of the claims process. IMO she will be establishing their removal and need to claim to the receivership real soon. We have a Corporate Veil that protects the holding company from the liabilities of the banks (which went to JPMC) so she will be ruling on determination, once the EC puts forth the Motion to do so..
I do expect a Motion from the EC on ruling on the SJ for deposits. That would basically nullify the Global Settlement that is being touted by Weil. If you have your deposits returned by the court and I read her remarks on this yesterday, then you do not have any reason to try and give away your NOL's.. Now the Kansas decision on a SJ for basically the same thing ruled in favor of the estate retiaining the NOLs and the FDIC not have any access to them. Nice Ruling Judge!
WMB Bondholders have very little ground in this process and will not get the conversion. As for a Chapter 11 Trustee that one is shaky..But Possible.
An appointed Chapter 11 trustee essentially becomes the CEO of the debtor, exercising such day-to-day control as he or she deems appropriate. The trustee, therefore, essentially displaces the management that got the debtor in its financial predicament.
Judge Walrath does believe that wrongdoing was perputrated upon this holding companies shareholders and equity has value or she would have denied the appt of an EC.