Replies to post #343939 on Mr Cooper Group Inc fka COOP

[marayatano]

The underlying security of the hybrid H's are junior sub bonds which carry a subornation clause that they must make seniors whole.

Right now seniors are accruing contract interest while the BK estate is providing federal judgment interest. This Opinion does not make seniors whole so the difference is made up by H's recovery.

That is why everyday the H's continue to bleed lower and lower until zero. Once it hits zero, they are not gonna get any part of the reorganized debtor nor issued any other new security.

... unless... an event stops the bleeding (interest), but the make whole clause is still there...

imo

[Olde English 800]

so keeping in line with this same train of thought, consider the H's getting a haircut, as folk here like to say; and recieving the difference in common shares of the newco. this would allow p's fv and h's a settlemnt of percentage of fv and common stock in newco.... (remembering the fact that they wanted to increase common share in newco buy about 20%). It is possible h's get 20% "haircut" off fv, and receive that 20% in new common......just a speculation, I'm not married to this line of thought.

[oilstrike]

Same here. P's and Q's are enough, imo. Easier to wrap my head around, lol!