Provide for an independent, but narrow, investigation by an Examiner and get to the accuracy of all the assets and numbers involved, including liquid and illiquid. This will not affect the time frame to any great degree, as both sides (Rosen & EC) must provide the financials and the details incorporated. This could prove to be a daunting process for Blackstone, without bending the facts and a logical first step for Judge Walrath, as it’s fair to both sides and can‘t be appealed.
Shareholder vote looks like a strong possibility and although a great many people have doubts to the outcome, the Pfd already have at least 2 seats if not more. Having insiders on the BOD is quite problematic for the entire BOD as it exposes possible conflicts of interest, misrepresented information, highly erroneous and possibly illegal decisions and not to mention an impropriety of inside deals made on behalf of bondholders, as well as favoritism to JPM via Weil/Rosen. It also may highlight the abrupt change of direction since Dec 2009 when Weil went from a supporter of the written complaint, to a charitable promoter to the FDIC/JPM. Matter of fact, Quinn was just getting hot when Walrath said; “with an amendment they could pursue a Tort and expand discovery”.
If the shareholders succeed in their BOD majority quest, or if the EC makes a motion to continue discovery in one form or another because improprieties have been discovered by Weil & Assoc having neglected their duties, some relief may be sought by Susman to have discovery continue via a court directive and at that point the Examiners role can be expanded. This could happen just on the POR/POS alone with all the myriad of conflicts built in or some breakdown in the BOD, who may want out before the shit flies. O&D insurance policies do not cover “Fraud” and that exposes anyone on the BOD with personal liabilities. How do they explain the complete abandonment of so many assets they filed actions for?
Although the waters here are mercurial, I believe the Judge has a great sense to what’s going on, but in her fashion has a methodical way to keep the inertia going, in a more narrow objective meant to cause a resolve between all parties, or exacting pain and chaos for those that wish to pull off a fraud in her BK court. Rosen, the Rat (whose Karma I wouldn’t even wish on Ethical or Irenginner), should be very careful how far he pushes this sham, because the ice is getting very thin, as well as the Judge’s patience.
And don’t be surprised if the Judge provides the long awaited decision on the $4 billion, as I believe she will be listening to every word coming out of Rosen’s mouth and as soon as she hears Rosen complaining about “wasting” creditor dollars, she will more than likely flip the $4 billion into WMI ‘s bank account to relieve the financial burden for all the wasted dollars Weil has been charging and take the $4 billion off the board as a playing chip, after all, both the FDIC and JPM have “already agreed” it was a deposit and the property of WMI.
Don’t let the Judge’s cautious pace frustrate you. Susman has a quiver full of arrows and this coming month we will have lots of hints, both subtle and bold as to where the direction is going and it could even include the removal of Weil (as drastic as it seems) by obvious conflicts, because the BOD “now” is in scrutiny and has some exposure problems, especially with the change of direction that the POR took. The BOD may reflect on it’s prior decisions and revisit all the aspects of the matter to better arrive at a more equitable resolve, rather than face problems.
My bet, as usual, is in the belief that WMI suffered from an evil cabal between JPM and the FDIC, (which I think will be eventually disclosed) and was not only solvent on it’s last day, but subjected to many inequities from being left out of the short list, undermining efforts by the FDIC going out beforehand to pitch WMI as a banking failure and being taken over in a midnight auction, instead of using legitimate methods already underway, we will prevail.