Briefly, there is a ownership restriction on equity shares to retain tax attributes such as NOL carry backs and carry forwards.
In order to retain these tax attributes, the court executed an order for:
5% of commons not to change hands, ie bought, sold, etc.
4.xx% of the P (I rounded it to 5% to make it easier and not be to technical).
There is no restriction on the K.
There is no restriction of Dimeq.
I do not have the order readily available, but I am sure some will post it, however, this was near the beginning of the case.
So, 1 HF/SNH can buy up to the allowed maximum of 5% of commons, etc.
SNH consists of 4 HF. So each HF is entitled up to 5% x 4 = 20%. The 20% does not include TPS. If you ass them, that 20% goes up 5% per HF, etc.
So, that is why I say HF combined (TPS/SNH) pretty much owns (will own) a substantial, if not majority float of the new WMI2.
We make money if the SNH/HF make money. In order to use our NOLs, we have to merge w/ someone that is in the SAME business, ie, reinsurance business, otherwise our NOLs are worthless.
imo