Replies to post #31157 on Washington Mutual Preferred fka WAMPQ

[clawmann]

Thanks, castboy.

So, after creditors are paid in accordance with the confirmed POR (and the GSA on which it is based), any surplus would flow as follows:

1. WAHUQ: $782 million. (23mil X $34). Is this $782 mil payout already provided for in the POR?

2. WAMPQ, WAMKQ, TPS. $7.5 billion [(3mil X $1000) + (20mil X $25) + $4bil). If money flows into this class, how will the money be divided among the different securities? E.g., if each security gets 33.3 cents of every dollar, that would result in the WAMKQ's being paid full face well before WAMPQ and TPS get close to face, so I am pretty certain that cannot be right.

There must be a formula that ensures that each dollar will be divided among the securities so that each security moves up an equal percentage toward face. According to my quick (rough) calculations, in order to maintain parity among these three groups of securities, each dollar would be divided as follows: TPS: 53.3 cents; WAMPQ: 40 cents; and WAMKQ: 6.7 cents.

Thus, if $1 billion flows into this class, WAMPQ would get $400 million or $133/share (13.3% of face).


3. WAMUQ