Replies to post #33427 on Washington Mutual Preferred fka WAMPQ

[marayatano]

The conversion ratio of Ps to commons is 1:117 (or something like that). Is there any chance that they can go with this conversion?

Since the company is reorganizing now and it is not going anything near to Chp 7, can we say that the preferreds will definitely get a reduction on their recovery?

1:117 was based on the prospectus that was PRE BK. Because the filing of chapter 11 bankruptcy protection, WMI is in default and P is entitled to liquidation preference of $1,000. Do not let the word "liquidation" fool you... It does not matter whether it is Chpt 7, 11, 13, etc.

Absolute priority always rules unless more senior parties agree (settlement) to a haircut or the Judge makes a ruling/order.

In this case, it appears Willingham made the haircut to give something to commons. The question is by how much?


Had this went on to confirmation, withOUT settlement, and WITH PJS numbers/NOLs, ONLY preffereds would have been in the money and would have been the fulcrum group. Commons would have gotten SH!T. Willingham knew this, so Willingham made the settlement happen...

What does this mean:

Willingham sitting on the BOD and BOT, etc. will make back his money from his commission/salary. So will the other 1 or 2 EC members, who will also be sitting in either the BOD, BOT, or whatever they are a part of.

How convenient... to settle.

So is laughing all the way to the bank? $30 million for a litigation fund = Attorneys $$

Who are they going to sue? ???

$100 million credit facility: Who are they going to buy out? remember, you need substantial income to use NOLs.

If Willingham trys to screw P/K, I am sure a ton of preferreds shareholders will bombard SG's office and Willingham with conflict of interest.



Just my opinion of course.... =)

[NASCOW]

Well then I hope my commons are worth at least $8 making my recovery that much better

$8 x 117 = 936 [just about 1000/share]