Replies to post #352518 on Mr Cooper Group Inc (COOP)

[MrchntDeth]

"for starke to be writting about this dime issue ,it proves it's just another scare tactic.judge will not rule on it to effect commons payout watch///

I got news for:

No matter how the judge rules on the Dime matter, it will most likely "effect" [sic] (and definitely AFFECT), the common payout.

If she properly rules that Dime Ltw's are Class 12, then NewCo has $337 million dollars of much-needed cash walking out the door.

If she rules that Ltw's are Class 21/22, well, NewCo keeps the $337 million dollars that rightfully belonged to the Ltw's, but this is NOT a windfall for Equity, as NewCo will be cutting its nose to spite its face. Those $337 million will cost NewCo some if not all of the $5.4 BILLION dollars in Unrestricted NOL's, with a resultant cost to NewCo of approximately $1.9 BILLION dollars (using a back of the envelope calculation and using a tax rate of 35%.

Let's see -

Let's keep $337 million of Dimes money, but it'll cost us about $1.9 BILLION in Net Value (although the taxpayers will be happy that we lost $5.4 BILLION dollars in NOL's.

Y'all should be praying for JMW to find that the Ltw's are Class 12.

At least, that the way that I see it.
see Sec. VIII(A)(2)(ii), for information on how Dime Conversion to Equity will AFFECT the Unrestricted NOL's

Ask yourself why WG&M included this information in the DS if it is of no consequence to the Unretricted NOL's, the ones that provide almost ALL the assets in reorganized NewCo?

Check for yourself at pp. 224-225 of the DS (pagination of the PDF)

Read it and weep.