Replies to post #384313 on Mr Cooper Group Inc (COOP)

[Evintos]

Does this apply to only employees or any equity holder?

It'd be safe to assume that it applies to all equity holders, whether they were former employees that were compensated with equity or average retail investor.

Equity not being a creditor therefore having no claim against a debtor. Having an equity holder "claim" fulfilled prior to creditors violates the absolute priority rule. Equity being interests are one of the last few to see compensation.

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Note: IF you hold equity and are thinking about filing a claim against WMILT for compensation for either escrow, unvested stock/restricted shares, dont. Your claims will most likely be disallowed (violates priority rule, not a claim according to section 101(5) of the Bankruptcy Code). If you do, all you will have done is


1. Pad WEIL, GOTSHAL & MANGES LLP bill (if I remember correctly, WEIL, GOTSHAL & MANGES LLP might actually have a cap on how much they can bill, but do you really want to take the risk?)

which will

2. Drain WMILT of more funds

and you will

3. Waste your own time and money.

(They'll most likely used the same tactic they're using now to disallow "Equity Claims".)
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Page 47 - and the entire objection to the 79th Omnibus (starting page 40) deals with WMB Retention Bonus Agreements, WMB Change in Control Agreements (CIC), Washington Mutual Inc Deferred Compensation Plan (DCP), and Washington Mutual Inc. Supplemental Executive Retirement Plan (SERP). - This is all employee stuff. The Equity Component is just that, the equity component of the above (CIC, DCP, SERP, etc.).

DCP and SERP being paid by JPMC according to the plan.

The entire objection basically states DCP, SERP, CIC, etc. were already paid according to the plan (settlement agreement), or are filed against WMILT wrongly. For those who were compensated for their services with equity, your claim is void because -

1. You were paid with equity. Whether or not equity is worth anything now is irrelevant.

2. Equity does not constitute a claim. (section 101(5) of the Bankruptcy Code)
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Personal note: Let this be a lesson for everyone - always get paid in cash.