Replies to post #37355 on Washington Mutual Preferred fka WAMPQ

[clawmann]

First, my condolences regarding the member of your family. I have been through that.

Second, I think you need to read the earlier posts a bit more carefully. Wahuq will get paid before equity. But they have to turn around and give a big chunk of their distribution to senior creditors. In other words, Wahuqs come with a pretty significant debt obligation that was triggered when the judge told the senior creditors they will only be getting the FJR, not their contract rate.

Under the terms of the Wahuq's, they have to use a large part of their distribution to compensate the seniors for the difference between the FJR and the contract rate specified in the senior instruments.

Wahuqs can not go back to the estate or the waterfall to get an additional distribution to make them whole again. They get one distribution and it is of no concern to the estate or the waterfall that the wahuqs have to then pay a big chunk of that to the seniors.