Replies to post #23725 on Washington Mutual Preferred fka WAMPQ

[maekuz]

I think they will divvy up the NOLs but not all of the amount will go to equity. Therefore i am expecting a massive haircut to the prefs and as a result a low offer (around $0.1 or $0.2) for the commons.

BR has to offer something for the commons since Mike Willingham owns commons only.

In the end i expect the prefs to be paid FV but the first offer will mean a haircut to the prefs.

aimho

[kirby96]

As a 'P' holder, I would take that deal in one second flat. Make that a half a second. Forget all the kumbayah crap. this is finance. In BK, it IS everyman for himself. Including common vs. preferred. Get over it folks.

[drrugby]

Hesthe,

The 7.5b$ includes caymens.

But, what is interesting about caymens is that it is a 3.5b$ liability tied to WMB.

We have also heard from the judge that she will not pierce the corporate veil.

But THJMW did not dismiss the Bond holders claims allowing them the opportunity to possible derivative claims in the event the FDIC did not persue or pay WMB bond holders bill.

If I recall the FDIC has not sued WMI for the bondholders because of fear of a counter suit and claims as JPM found out in its turnover adversary proceeding.

As Wamu turns..

Speculative buying will continue till the POR V5 is announced.

Which will slowly push the 3-5% PPS higher per day.

If a settlement is to be announced, It will be like lightning, Shorts will cover 2-3 days prior to the end of the reporting period by june 30th.

If a massive short squeeze (cover) occurs, 100-200% per day PPS.

GO WAMU..

DrR..