Replies to post #36698 on Washington Mutual Preferred fka WAMPQ

[warcton]

<1) Could "H" request to money back from P & K as they are in low ranks of H?

2) Who will be responsible for 30 million expenses per month? Like Starkes said that is H's responsibility. Is the expenses should be allocated and paid as senior notes? If so, it seems the bottom of the waterfall will be damaged, possibly commons.

3) Does disallowance cover all senior bond, subordinated bond, and PIERS from those "Settlement Bondholders"? >



1. No. The estate will pay H's(PIERS) their full claim plus FJR minus any disallowed claims from SNH's including interest for those disallowed claims. If the remaining 35% PIERS have to give up most or even all of their money to Senior Notes per the PIERS subordination agreement, is of no concern to the Estate(WMI).

2. Interest will accrue at FJR and will be paid by WMI. Anything that PIERS owes to Senior Notes will probably continue to accrue at the contract rate-FJR but that will be paid by the PIERS Trust and not by WMI.

3. We don't know yet because the EC has just been granted the right to pursue those claims against SNH's. I think it should.