Replies to post #354164 on Mr Cooper Group Inc (COOP)

[NASCOW]

what she thinks is the proper legal conclusion

that's the key, not necessarily the right legal conclusion.

[gophilipgo]

I partially agree, but mostly disagree. Yes, the judge's reasoning won't be "I can't put them in 18 because..."; however, if she does put them in Class 18, I would wager she expects some sort of compensation be offered to DIMEs through some modifications to the POR. How can she force a group into a class that is entirely skipped over in the new POR? How can she legally violate APR without DIMEs consent? Do you have any examples of where such a thing has occurred in Walrath's court (or another)?

[dragon52]

The DIME opinion and where they are placed in priority has nothing to do with the current plan construct. Judge Walrath is not looking at the plan and saying "oh i cant put them in 18 because...". She will render her opinion according to what she thinks is the proper legal conclusion. It doesn't matter what the plan says. Obviously, the debtors are trying to sway her to put DIME in 21, but I doubt that works.

Interesting... the correct ruling would be DIMEQ is neither equity or debt thus do not warrant any class since... If warrants had value, a strike price would have been stated and it should have an expiry date, which it has neither. Nor did it have a conversion rate. Thus how can it be any of equity or debt?

Regardless of whether now DIMEQ demands compensation, the deal was struck years ago and nothing said against it, thus it is now a moot point. Blame the mistake on the lawyers who scrutinized the deal and did not catch the mistake. To say that DIMEQ LTWs are owed something is beyond its time limitations now.