Replies to post #2449 on Dime Bancorp Inc (fka DIMEQ)

[philipmax]

Thanks BKshadow, your analysis appeals to my understanding of the situation.

PS I've owned these LTWs since they were first issued.

[loginusername]

bkshadow - Thanks. Please keep posting. I wish I could add something useful but I can't.

[bullwinkle99]

bkshadow- keep posting please

my comments: in calculating the $183M in the 6th DS, rosen has (intentionally, i believe) clearly made some errors, most notably that he "forgets" to gross-up the award for tax purposes.

also, i'm confused about which tax rate is relevant to DIMEQ. Does the debate about tax rates in the Court of Federal Claims have any relevance to DIMEQ? After all, our claim is against the debtors for breach of the warrant agreement. wouldn't we just use the rate WMI would have used if they had actually received the $$?

The warrant agreement basically says use highest marginal rate for an NYC-based corporation to get the tax expense (and it doesn't say anything about what rate to use in calculating a gross-up). In other words, the agreement specifies the same rate regardless of what company actually collects the $$.