This is why I don't converse on here as much as I used to.. You get people who think this Judge should unilaterally do whatever they need her to do.. The rules, codes and laws are written by Congress, if they wanted BK Judges to unilaterally do things, they would have put in the code..
A bankruptcy judge is not a criminal judge, this judge is bound by the rules and procedures of bankruptcy law, so she can not say "settle this or else!" she has to coax the parties to the table. She is using a mediator because parties to the case are much more willing to discuss their issues privately with a disinterested party than publicly with a judge. As you will all recall when she has had chambers meetings, they have been "in-camera" and many parties have been present.
This is what is wrong with all of the naysayers on this board.. If THJMW (The Honorable Judge Mary Walrath) had not called out the concerns of Nate Thoma in her Jan 7 opinion, we would have all lost our investment and be doing something else by now. Many of you "investors" would have been crying in your bourbon, but that did not happen, she threw equity a bone and put the insider trading allegations into the opinion.. Making sure to point out the court can not release the SNH's because of these allegations and no consideration was being obtained for the releases. She is now protecting equity from the debtors (the adversaries she personally called out from the bench) because it is the debtors in possession who are in charge of administering the estate, not the Judge. She found their behavior suspect and ruled to appoint an examiner, reversing herself on the previous denial. If you guys remember, the examiner also pointed to a "litigation morass" and "difficulty with collection" when he concluded the GSA was fair and reasonable.. He saw alot more than us, yet he still said "the ability of the parties to litigate the claims will cost the estate more, than the recovery they may hope to get." In other words, JPM and FDIC have way to many resources and funds when it comes to litigation and will bog the estate down in a mess that could drain the estate money before it drains theirs.
A BK judge is basically a referee and will step in when it is necessary to rule on something. However, you have to understand most of the issues in BK are settled prior to coming up to the bench and very few ask the Judge for a "clarification of the law!" If you have an issues with investing in BK's and want to bash the Judge who is keeping us alive,
I say "GROW UP AND GO READ SOME BANKRUPTCY LAWS AND BOOKS!"
In Feb 2010 because she is bound by the rules of procedure, she asked each party to the GSA whether they were ready for her to rule. The FDIC said "we would like some more time your honor." She asked JPMC and Debtors counsel if they had any objections to FDIC requesting more time and they said "NO!" They all walked back in the courtroom on March 4th, went straight to chambers and this time it was the debtors who wanted more time. She was going to rule on March 12th, but Rosen stopped her because they had a GSA that stopped the claims process from being adjudicated. As we all are quite aware 27B from each party JPMC and FDIC-R were never adjudicated, but the GSA settles them. How are we supposed to know what those claims are, maybe the FDIC-R is wanting the estate to pay for the WMB Bondholders, we do not know and many have speculated on what the claims can mean. She made a point to make sure that the procedure of 9019 would be followed at the EC's request.
As we move forward with the mediation process, we have to understand exactly who was sent to mediation. It wasn't JPMC or FDIC-R, no it was [all] the other parties who want the cash and scraps that are left. The GSA clears the claim docket on the JPMC/FDIC-R side and puts a veil over the parties to it. However, the 7B in cash that is coming back to the estate, has to go somewhere and that my friends are the parties who were sent to mediation.
EC has done a superb job of adjudicating their IT claims, because it has shown a "bright light at the end of the tunnel." The SNH's have over 3B in creditor claims against this estate and THJMW colored them on IT. That means her ruling of disallowance and possibly even disgorgement could effectively ruin not only their careers, firms and possible freedom, it sets a new precedent in the way the hedge funds who want to buy up debtor debt will need to operate if they elect to be a part of the process. We all know March 12th was no fluke, it was insider trading, and it harmed every shareholder of all 3 series of stocks. The insiders knew what Rosen was going to do, so they traded early to kill the stocks with very small volume and made big money doing it (disgorgement). They are guilty of many more instances and new discovery order against them will lay it all to bare.
So, for the naysayers who want to keep bashing this Judge, I say go to some other courtrooms and see how other judges are punting issues. Settlement is part of court, in any court, and in law it is used 90% of the time. Why would any of you think it would be any different in here? She gave us a bone, she could easily have wiped us out; we know how long the Appeal process is in BK courts. She left us alive and breathing, so we can live to fight on and that is exactly what Susman Godfrey (Parker/Edgar/Seth/Justin) have been doing...
THEIR JOB!!!
WHAT ELSE DO YOU WANT ?????
Everything has a process !!!
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