Replies to post #5019 on Dime Bancorp Inc (fka DIMEQ)

[gophilipgo]

Agreed.

[marayatano]

Nothing needs to happen with DIMEQ before this case proceeds to the next round of Disclosure Statement hearings. We already had 2 rounds of such when we were much farther away from a decision in our adversary trial. We have a disputed claims reserve established in case we win and this allows the main case and the adversary case to move independent of one another.

The Judge's decision on Dime certainly impacts many classes within the waterfall but her decision does not need to be rendered before we see another DS or have another hearing. In fact this case could be confirmed before she renders a decision and were it not for the IT issue it likely would have been confirmed before our trial even began. The new DS will have to outline the treatment of the Dime based on the various potential scenarios just as the previous ones did.

Now hear me out here re: the bold portion of your quote. This not for debate, but for opinions.

We all know that the waterfall stops at Class 16 (PIERS) currently.

Rosen inserted a footnote in one of his pleadings re: Class 18, while originally, Dimeq was suppose to be only Class 12 or Class 21.

We know that Judge Walrath set the reserve for Dimeq for approx. $337 million.

All the above are facts.

Now this is the thing to ponder (because I know Rosen is slime: Although Judge Walrath set the reserve for Dimeq, it would not matter whether a DS/POR is confirmed because the reserve was set, however, the reserve was set BEFORE Rosen inserted the Class 18 footnote.

Now here is where it gets interesting and I believe why he inserted it: Under a cram down (without taking disallowance from SNH), the $ stops at Class 16 (PIERS) and depending on where Dimeq is placed in the waterfall, it dictates how they are treated/paid. BUT, if Dimeq ends up in Class 18, then the reserve set is rendered moot] because $$ never flowed to Class 18 (or Class 21) because it stopped at Class 16 and the reserve amount of $337 is put back into the waterfall and is credited to Class 16 (PIERS), however, if they are in Class 12, then reserve is set and paid.

Under a settlement is a difference story and it it goes to litigation, Class 12 and 18 is paid regardless.

Thoughts?

imo of course