Replies to post #4502 on Dime Bancorp Inc (fka DIMEQ)

[wall_street61]

If these had just been named Litigation Tracking Trust Certificates, then we would not be having this problem. Unfortunately, the term warrants is being applied by the debtor's in a bit of sophistry. Even by BK rules, these "warrants" have a 0.00 conversion cost, meaning that, by definition, they are not equity warrants.

Not so clear. The prospectus contained an exercise cost of .01 per LTW and the LTW's have a theoretical expiration date, which is the date a final judgment becomes non-appealable or 60 days after notice they are exercisable. Both of those point to equity.

[linda1]

I didn't mean that there was an ambiguity. The Warrant Agreement provides for adjustments and considerations for more than just 1 type of an Event.



I understand why the Plaintiffs are requesting a cash payment in light of the provisions in Section 4.1 (b) and 4.2 (c) of the Warrant Agreement - which basically states that if the Common Shareholders are given an election of all cash so then should the LTW Holders be given the same election.


I was simply pointing out other types of Events - Section 4.5 - such as a reorganization, which in Section 4.5 basically states that adjustments will be required so that the LTW Holders can exercise their Warrants.


I did not mean that the "totality" of the Warrant Agreement only provided for payment in WMI common stock. I meant that under Section 4.5 and the intent of the Warrant Agreement - and in the event of an reorganization - and after the required adjustments the Warrants could be exercisable for new WMI Common Stock - and yet still eligible for a cash election under Sections 4.1 (b) and 4.2 (c).