Replies to post #345158 on Mr Cooper Group Inc (COOP)

[clawmann]

I think when people say "newco", they mean "reorgco".

[WithCatz]

Large, it's a term-of-art in bankruptcy cases. The effect of executing an approved 'Plan of Reorganization' is to cause a "New" company to become in existence, shedding all the baggage of the "Old" company.

{That's also why new securities are issued as well.}

Of course, it's a reorganized company, by definition.

But "NewCo" is the normal shorthand used, as opposed to "OldCo" (the current company).

It's normal bankruptcy terminology.

....Catz

[jhdf51]

Thanks for your .02! NEWCO just another name for reorganized WAMU.

[gyspsy]

Large Green, great point again.
However this WAMU take-down/BK/reorg, etc.... whatever you want to call it might just be the "tip of the iceberg" to reorg. BK laws going forward and therefore a precedent IMO.

GYS

[wangwang]

Absolutely Agree....NEW CO is pointless unless we are getting the "original" company with all the "original" assets backs